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 more upbeat readings, though Fed policymakers maintain a focus on target 2 percent inflation.
Markets have vigilantly followed both the new figures and Fed officials' statements.
CME Group monitors how market sentiment adjusts in response to the data.
Geopolitical tensions and currency movements abroad additionally continue to are driving global inflation expectations.
Analysts say the shift could compel the Fed to rethink its policy stance.
Investors are monitoring bond yields for clues about expected rate moves.