May 19, 2016
Minutes of the most recent Federal Reserve meeting reveal a bit of interesting chatter regarding a potential interest rate hike. Most policymakers say they favor upping the Fed’s benchmark rate in June, though clearly there’s much debate among the group.
The big IF’s, they say, are economic rebound from the slump experienced in Q1, continued labor market improvement, and a pick up in inflation. Financial markets and economists are less enthusiastic about a rate hike, citing global economic turbulence, and a possible British withdrawal from the European Union.
A critical factor in the decision will be economic data over the next few weeks, particularly the May jobs survey. For the first time in nine years, the Fed lifted its key rate in December, but has not changed it since then.