[Analyst: Fed's Hawkish Shift Narrows Walsh's Room for Rate Cuts] Odaily Planet Daily News - Eamonn Sheridan, an analyst from the U.S. financial website InvestingLive, pointed out that the minutes of the Federal Reserve's April meeting indicate a significant shift in the Fed's stance. The previous emphasis on responding 'flexibly and swiftly' based on economic data has been replaced with new language: persistently high inflation, coupled with the uncertainty of the economic impact from the prolonged Iran conflict, may mean that policy needs to remain on pause longer than previously anticipated. The inflation situation faced by the new Chair, Walsh, is not merely an energy issue. Officials noted that elevated fuel costs are gradually being passed on to shipping rates, airfare prices, and fertilizer costs, spreading inflationary pressures to broader areas. This transmission effect makes it harder to view inflation as a temporary factor and provides hawkish officials with more sustained justification for advocating high interest rates or even rate hikes. The market currently expects that if inflation does not subside, the Fed may resume rate hikes by late 2026 or early 2027. Walsh himself leans toward rate cuts, but this stance creates potential conflict with a committee that is clearly becoming more hawkish. As Walsh's leadership style becomes more apparent, this dynamic could exacerbate volatility in internal FOMC communications. (Jin10)