WASHINGTON, D.C. — A majority of Federal Reserve policymakers at their April 28-29 meeting in Washington said policy tightening may be needed if inflation continued running persistently above the central bank's 2% target. The Federal Open Market Committee left its short-term policy rate unchanged in a range of 3.50% to 3.75% at the gathering, which was the last policy meeting chaired by Jerome Powell.

A growing number of officials said the central bank should lay the groundwork for a possible rate hike. The April 28-29 meeting was the second in a row to feature more policymakers feeling a rate hike could be appropriate if inflation remained above target than at the immediately prior policy gathering. "To address this possibility, many participants indicated that they would have preferred removing the language from the postmeeting statement that suggested an easing bias regarding the likely direction of the Committee's future interest rate decisions," minutes of the meeting said.

Four policymakers dissented at the meeting, the most dissenting votes since 1992. Governor Stephen Miran dissented in favor of a rate cut, while three other policymakers dissented over the continued use of language suggesting the Federal Reserve may cut rates.

Federal Reserve officials' concerns about inflation being stoked by the Iran war intensified last month. The U.S.-Israel-led war against Iran has driven up energy prices and increased cost pressures across a widening array of goods and services, with oil prices up by more than 50%. Latest consumer and wholesale inflation data show price pressures have begun widening beyond the energy sector.

A steady jobless rate and two months of stronger-than-expected job creation show the employment market has not weakened. President Donald Trump has been explicit in his demands for deep rate cuts.

U.S. and global bond markets show that investors expect the Fed and other top central banks to lift interest rates before long to counter war-induced inflation. The yield on the 2-year U.S. Treasury note rose from just below 3.40% on February 27 to above 4.10% on Tuesday.

A poll conducted by Reuters showed fewer than 50% of economists now project a rate reduction by December, down from two-thirds a month earlier. Roughly half of respondents see no change in rates this year, and a handful penciled in at least one rate hike.