The US Federal Reserve appears poised for a hawkish shift, as late April meeting minutes reveal many members supported removing an easing bias. This move signals a potential for higher interest rates to combat inflation, which remains above the 2% target. The ongoing West Asia war and resulting oil shock are pressuring the Fed to tighten monetary policy. Incoming chair Kevin Warsh will likely encounter a committee leaning towards rate hikes by mid-June. While President Trump favors cuts and Warsh previously linked AI to lower rates, his current stance is unclear. Global markets are keenly observing the Fed's next moves.