The Fed's internal discussion has shifted from "when to cut interest rates" to "when to raise interest rates again"

According to WSJ, discussions within the Federal Reserve on the path of interest rates are taking a clear turn. After months of expectations of interest rate cuts, officials have begun to discuss "what conditions will be necessary to raise interest rates again." Reported that at the latest interest-rate meeting, the three regional Fed chairmen publicly opposed continuing to retain the policy wording that "interest rates are more likely to be cut next." Dallas Fed Chairman LorieLogan said that future interest rate adjustments "may be interest rate hikes or interest rates." Outgoing Federal Reserve Chairman Powell also admitted that the Fed is gradually shifting from a "dovish" to a "neutral stance" and said that if interest rates need to be raised in the future, the Fed will first shift to neutral guidance and then enter a tendency to raise interest rates. The report pointed out that continued high energy prices, the Strait of Hormuz crisis and the escalation of the situation in the Middle East are pushing up inflation risks in the United States and weakening market expectations for interest rate cuts during the year.