finance 1 min read

Fed Hawks Warn of Rate Hikes as Inflation Stays Stubborn

Multiple Fed officials signal potential rate hikes if inflation remains above 2%. Key shifts in monetary policy outlook explained.

2026-05-20T20:00:55.121Z

Fed Hawks Warn of Rate Hikes as Inflation Stays Stubborn

The Federal Reserve spent early 2025 cutting rates. Now, several top officials warn they may reverse course.

Boston Fed President Susan Collins and Chicago Fed President Austan Goolsbee both signal rate hikes are possible if inflation stays sticky. Chair Jerome Powell warns of "more frequent and persistent supply shocks," a framework for higher rates.

The benchmark rate sits at 3.5%-3.75% after 75 basis points in cuts. Markets now price possible hikes before July 2027. Crypto and risk assets face headwinds as easing narrative fades.

Investors should watch inflation data and Powell's formal guidance at upcoming FOMC meetings.

Topics Federal Reserve Susan Collins Austan Goolsbee Jerome Powell inflation 2% target FOMC