Fed Concerned About Premature Rate Cuts Despite Recent Uptick in Inflation

• Fed officials worried progress on reducing inflation could stall as growth in spending and hiring stays strong

• Most Fed officials concerned about moving too fast to cut rates before clear inflation is down to 2% target

• Disruptions like Middle East shipping conflicts could accelerate prices

• Fed signaled needing more confidence on inflation before cutting key rates, disappointing market hopes

• Recent inflation gauges show prices rising more than expected, worrying some officials on path to rate cuts