Recent hotter-than-expected inflation readings and resilient consumer spending have shifted trader focus toward the possibility of Federal Reserve rate hikes rather than further easing, with the target range held at 3.50-3.75 percent following the April 29 FOMC meeting. April minutes released May 20 showed a majority of officials open to policy firming if inflation remains persistently above the 2 percent goal, amid energy price pressures linked to Middle East developments. Market-implied odds from Fed funds futures now price in roughly a 60 percent chance of a 25 basis point hike by early 2027, contrasting earlier expectations for cuts later this year. The June 16-17 FOMC meeting and upcoming CPI data will provide key tests for whether these dynamics sustain the repricing in trader sentiment.