Central Banks Signal Potential Rate Hikes
Global policymakers kept interest rates steady this week but warned of future hikes due to energy price volatility. Markets now expect tighter policy by June.
Global central banks held interest rates steady this week but warned of upcoming hikes to counter inflation pressures stemming from multiple factors including energy costs and wage growth. Major central banks signaled they may raise rates at upcoming meetings.
### Energy and Inflation Concerns Drive Policy Signals The Federal Reserve (Fed) kept the federal funds rate unchanged in an 8–4 vote on Wednesday, the narrowest split in decades. Three policymakers felt the reference to an easing bias in the policy statement was no longer appropriate. Outgoing Chair Jerome Powell said a policy change could conceivably be made as soon as June. Traders expect the Fed will skip rate cuts in 2026 and possibly raise rates in the first half of 2027.