The latest Federal Reserve meeting minutes confirmed what many investors feared. Interest rates are likely to stay higher for longer, inflation risks remain elevated and the Fed still sees the economy as too strong to justify aggressive rate cuts. Markets are now facing a reality where expensive valuations collide with restrictive monetary policy. What does this mean for stocks, bonds and the outlook for 2026?

Yesterday's release of the minutes from the April Federal Open Market Committee (FOMC) meeting gave investors a more detailed look at the current thinking of key US monetary policy makers. While press conferences and official statements only offer a basic framework for central bank decisions, it is often in the minutes that nuances are hidden that can significantly influence expectations for future interest rate developments. For markets, it is a key document that helps investors better understand how the Fed perceives the economic situation and what steps it might take in the…