In the latest minutes from the Federal Reserve's meeting, officials indicated that interest rate hikes might be necessary if inflation remains elevated, particularly due to the ongoing Iran war. The Federal Open Market Committee voted to maintain its benchmark rate between 3.5% and 3.75%, but the meeting saw four dissenting votes, the highest since 1992. This reflects a growing divide among officials regarding future monetary policy, especially concerning the impact of the Iran conflict on inflation. While some members suggested a potential rate cut if inflation trends back towards the 2% target, a majority highlighted the need for policy tightening if inflation persists above this level. The minutes revealed that many participants believe inflation may take longer to stabilize than expected. Market analysts are now predicting a higher likelihood of a rate hike by late 2026 or early 2027, as inflation measures have surged above 3% due to rising energy prices. Goldman Sachs forecasts an annual inflation rate of 3.3% for April, complicating the Fed's dual mandate of achieving full employment and stable prices.