The Federal Reserve's latest meeting minutes reveal that officials are open to considering interest rate hikes if inflation remains above the 2% target. This stance reflects ongoing concerns about inflationary pressures and the Fed's commitment to price stability. Currently, the policy rate is held between 3.50% and 3.75%, but a shift towards a more restrictive monetary policy could occur if inflation persists. Market reactions to the Fed's minutes suggest a more hawkish outlook, with prediction markets indicating a 31.5% probability of a rate hike in 2026, up from 28% the previous week. Conversely, the likelihood of a rate cut by June 2026 has decreased to 1.2%. These developments underscore the Fed's cautious approach to monetary easing amid inflation concerns.