Federal Reserve officials expressed increased concern over persistent inflation in the minutes from the April 30-May 1 FOMC meeting. Despite some progress, policymakers are hesitant to reduce interest rates, keeping the benchmark rate at 5.25%-5.5%, the highest in 23 years. Officials highlighted risks from geopolitical events and consumer struggles, noting the increased use of credit cards and buy-now-pay-later services. Market expectations for rate cuts this year have shifted, with a potential first cut in September.
