FOMC Minutes: June Hike 'Likely'
Minutes from the Federal Open Market Committee showed most officials saw
June hike 'likely' if incoming data showed an improving economy.
“Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter, labor market conditions continuing to strengthen, and inflation making progress toward the Committee's 2 percent objective, then it likely would be appropriate for the Committee to increase the target range for the federal funds rate in June”, minutes said.
FOMC also dialed down concerns about risks from abroad and turbulent financial markets. "Participants generally agreed that the risks to the economic outlook posed by global economic and financial developments had receded over the intermeeting period," the minutes said.
The Fed made reference to market expectations, leaving door open for a rate hike in June without pre-commitment.
“Some were concerned that market participants may not have properly assessed the likelihood of an increase in the target range at the June meeting, and they emphasized the importance of communicating clearly over the intermeeting period how the committee intends to respond to economic and financial developments," the minutes said.