The minutes from the May Federal Open Market Committee (FOMC) meeting delivered a harsh reality check to investors, countering the dovish signals earlier conveyed by Fed Chair Jerome Powell during the May press conference.

Three key messages reignited investor fears about the increasing likelihood of a prolonged period of high interest rates.

First, participants at the meeting assessed that it would take longer than previously anticipated to gain greater confidence in inflation moving sustainably to 2%.

Second, many participants discussed whether the current policy is effectively restrictive.

Third, "various participants" expressed a willingness to tighten policy further should risks to the...