FOMC Minutes Point to Rising Inflation Concerns

J.P. Morgan analyzes the May 2026 FOMC minutes, noting a hawkish turn as participants express concern over accelerating core inflation and discuss potential policy firming.

Key Takeaways

• 1.The FOMC minutes revealed a hawkish shift, with a majority of participants suggesting policy firming may be needed if inflation remains above 2%.
• 2.Participants noted an outright acceleration in inflation rather than just a lack of deceleration, leading many to favor removing easing bias language.
• 3.New inflationary concerns have emerged regarding AI investment raising short-term input costs and potential commodity price persistence post-Middle East conflict.

Table of Contents

• Other Disclosures
• Legal Entities Disclosures and Country-/Region-Specific Disclosures

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