Svmuureports that Federal Reserve officials' concerns over the Iranian war pushing up inflation further intensified last month, with a growing number of officials indicating the Fed should pave the way for possible interest rate hikes. This suggests that incoming Fed Chair Kevin Warsh will take over a decision-making team that is increasingly leaning hawkish. Additionally, most policymakers indicated at the April meeting that further tightening might be necessary if inflation continues to persist above the 2% target. The minutes stated: "To address this possibility, many participants noted they preferred removing the language suggesting a future easing bias in interest rate decisions." These minutes, described as "the most divided in generations," further reveal the shifting dynamics of the two camps awaiting Warsh's arrival: a growing hawkish faction vigilant about inflation spurred by the Iranian war and opposing any discussion of rate cuts, and a dwindling dovish faction still inclined toward rate cuts. The primary driver pushing policymakers further toward a hawkish stance remains inflationary pressures, which have been exacerbated by the war. The minutes show that the April meeting was the second consecutive one where more policymakers believed that if inflation remains above target, rate increases might be warranted. (Jin Shi)