Federal Reserve Bank

A key question facing new Federal Reserve Chair Kevin Warsh is whether he will have to raise rates in the next few meetings to underscore his commitment to fighting inflation.

It’s a sharp change from March, when no policymakers penciled in a hike and the committee as a whole forecast one cut in 2026.

Economists say Warsh will likely aim for a neutral approach, largely because he is taking over the Federal Reserve at a challenging time.

The Federal Reserve left its benchmark interest rate unchanged for the third straight meeting but signaled it could still cut rates in the coming months, moves that attracted the most dissents since October 1992.

The minutes underscore the Fed’s dilemma as it seeks to fill its congressional mandates of low inflation and maximum employment.

Rate increases by the Federal Reserve would be a sharp shift from late last year, when the central bank cut its key rate three times.