Fed Policymakers Hint at Future Rate Hikes, New Chair Ends Forward Guidance

The Federal Reserve kept interest rates steady, but a significant portion of its policymakers expressed openness to a rate increase later in the year, indicating a more hawkish outlook. In his inaugural press conference, the new Fed Chair emphasized a commitment to the 2% inflation target and notably abandoned traditional forward guidance, stressing a data-dependent approach for future policy. This shift has prompted some analysts to revise their expectations, with a growing possibility of rate hikes this year.