Federal Reserve Governor Christopher Waller said Monday that inflation risks are climbing in the United States have shifted toward higher price growth ahead.
The assessment marks a important change in the Fed's posture after a period of falling inflation in recent months.
Recent adjustments to how inflation is measured have produced better readings, though Fed policymakers maintain a focus on target 2 percent inflation.
Markets have carefully followed both the recent releases and Fed officials' statements.
CME Group monitors how market sentiment adjusts in response to policy cues.
Geopolitical tensions and currency movements abroad moreover continue to are driving global inflation expectations.
Analysts say the shift could force the Fed to rethink its policy stance.
Investors are monitoring bond yields for clues about upcoming rate moves.