Fed officials fret over inflation risk, weigh rate hikes

Fed June meeting minutes revealed that most officials would support higher rates if inflation stays elevated, while most would hold or cut if disinflation resumes. New Fed Chair Kevin Warsh is overseeing a review of the central bank's communications, and the latest dot plot shows rate hikes are now seen as more likely than cuts. The hawkish tilt from the world's most influential central bank poses a risk to emerging market flows, including Indian equities and the rupee.