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Fed official: rate hikes possible if Middle East war fuels inflation

A top U.S. Federal Reserve official warned that further interest rate increases could be necessary if price shocks from the Middle East conflict push inflation higher.

Published May 1, 2026, 10:34 AM EDT | WFMZZ

A key U.S. Federal Reserve official warned Friday that a series of interest rate hikes could be needed if price shocks from the Middle East war are larger than expected and fuel inflation. The warning underscores the possibility of tighter monetary policy should external price shocks drive inflation back up.