FOMC Minutes: Most officials saw June hike 'likely' if economy warranted

[thenews]

Highlights of the Minutes from the April 26-27 FOMC meeting:

• Range of views on whether data would support June hike
• Here is the April 27, 2016 FOMC statement

Big jump in the US dollar on the 'likely' hike talk. S&P 500 drops about 15 points in a flash.

More:

• Most judged it would likely be appropriate to hike in June if data remains consistent with Q2 GDP pickup, firmer labor market conditions and progress on inflation
• Some concerned that markets may not have accurately assessed the chance of a June hike
• Policymakers expressed a range of opinions on whether there would be enough incoming data before June 15 meeting to warrant a hike
• Some judged outlook as now roughly balanced, many others continued to see downside risks
• Few saw it as appropriate to hike in April, two worried that US behind the curve on inflation
• May expressed confidence that US growth would pick up in coming quarters but some saw risk that a more persistent slowdown underway
• Generally saw risks from global and financial developments as having diminished but still warranted close monitoring
• Risks to the projection for inflation were still judged as weighted to the downside, reflecting the possibility that longer-term inflation expectations may have edged down
• Full text of the FOMC Minutes

[thenews]

Fed's Dudley: June is definitely a live meeting

• Quite pleased to see market increase view on market's June-July views
• Data will drive what Fed actually does
• If he's convinced his forecast is on track, then June or July hike is reasonable