Fed minutes hint at higher interest rates

WASHINGTON — Federal Reserve officials' concerns about inflation being stoked by the Iran war intensified last month, with a growing number open to the possibility that they may need to raise interest rates, in a sign that incoming Chair Kevin Warsh will inherit an increasingly hawkish crew of central bankers.

A majority of Fed policymakers at their April 28-29 meeting felt "some policy firming would likely become appropriate" if inflation stays persistently above the central bank's 2% target, according to minutes of the meeting released Wednesday.

"To address this possibility, many participants indicated that they would have preferred removing the language from the postmeeting statement that suggested an easing bias regarding the likely direction of the Committee's future interest rate decisions," minutes of the meeting said.