Copper prices fell sharply after Federal Reserve minutes revealed policymakers remain wary of further interest-rate cuts. The minutes from the central bank's latest meeting dampened expectations for monetary easing, which typically supports industrial metals demand. This shift in Fed policy outlook sent ripples through commodity markets, with base metals particularly affected.

The decline reflects growing investor concerns that higher interest rates could slow economic growth and reduce demand for industrial materials. Copper, often viewed as a barometer of global economic health, is especially sensitive to changes in monetary policy and economic forecasts. The minutes suggested Fed officials are taking a more cautious approach to rate cuts despite inflation showing signs of easing.

Traders and analysts are now reassessing their positions in industrial metals as the Fed's stance could influence manufacturing activity and infrastructure spending. The minutes indicated that while some policymakers see the need for eventual rate cuts, the majority prefer to wait for more data before adjusting policy. This development underscores the delicate balance between managing inflation and supporting economic growth in the current environment.