Federal Reserve Governor Christopher Waller said Monday that inflation risks have risen in the United States have shifted toward higher price growth ahead.
The assessment marks a clear change in the Fed's posture after a period of falling inflation in recent months.
Recent adjustments to how inflation is measured have produced stronger readings, though Fed policymakers remain committed to target 2 percent inflation.
Markets have vigilantly followed both the new figures and Fed officials' statements.
CME Group monitors how market sentiment evolves in response to policy cues.
Geopolitical tensions and currency movements abroad moreover continue to are driving global inflation expectations.
Analysts say the shift could compel the Fed to rethink its policy stance.
Investors are tracking bond yields for clues about expected rate moves.