The Globe and Mail reports in its Thursday, April 9, edition that a growing number of U.S. Federal Reserve policy-makers believed last month that interest rate hikes might be necessary to combat inflation, especially considering the inflationary effects of the U.S.-Israeli conflict with Iran, according to the minutes from their March 17-18 meeting. A Reuters dispatch to The Globe reports that the minutes said: "Upward adjustments to the target range for the federal funds rate could be appropriate if inflation were to remain at above-target levels." The Fed has been cutting rates since 2024. Its statement was designed to lean toward more reductions in the future. Still, the March minutes reflect a larger group open to potential hikes than at the January meeting. After the Feb. 28 outbreak of war, "many participants pointed to the risk of inflation remaining elevated for longer than expected amid a persistent increase in oil prices," while others cited concerns about rising inflation expectations and risks that higher headline inflation would raise underlying inflation trends as well. Should the higher energy prices persist, "higher input costs would be more likely to pass through to core inflation," the minutes said.