Rate hikes are now more likely as the Federal Reserve weighs rising inflation fueled by higher oil prices and ongoing economic uncertainty.

Richmond Fed president Tom Barkin suggested Thursday that raising interest rates may not be the right prescription for the current moment and that the Federal Reserve could look past the surge in oil prices if long-term inflation expectations don’t rise.

The Fed can't wait until its June meeting to address surging bond yields. Strategists say Fed officials should turn hawkish now to calm markets.

Federal Reserve meeting minutes reveal most officials consider rate hikes possible if inflation stays above the 2% PCE target, delaying hopes for cuts.

In his final news conference as Fed chair on Wednesday, Jerome Powell said he plans to remain on the Federal Reserve’s board of governors after May 15.

At what is likely to be Federal Reserve Chair Jerome Powell’s last meeting as chair, the Fed voted to keep its federal funds rate between 3.5%-3.75%. The Fed hasn’t cut rates since December 2025—and it’s unclear what direction Trump’s nominee for Fed chair Kevin Warsh will potentially sway interest rates if he takes over after Powell’s departure.