Federal Reserve Governor Christopher Waller said Monday that inflation risks are moving upward 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 earlier this year.
Recent adjustments to how inflation is measured have produced better readings, though Fed policymakers maintain a focus on target 2 percent inflation.
Markets have vigilantly followed both the recent releases and Fed officials' statements.
CME Group monitors how market sentiment evolves in response to the news.
Geopolitical tensions and currency movements abroad furthermore continue to remain key in global inflation expectations.
Analysts say the shift could compel the Fed to modify its policy stance.
Investors are tracking bond yields for clues about expected rate moves.