Back
21 May 2015
A rate hike in June almost discarded – DB
FXStreet (Edinburgh) - Analyst at Deutsche Bank Jim Reid assessed the recent FOMC minutes.
Key Quotes
“It seems the Fed have moved closer to giving up on a June hike after the release of April's FOMC minutes last night. This pretty much confirms the market's expectation but it firmed it up more”.
“Although a ‘few’ members anticipated that the US economy would be ready for a move in June, this was seemingly outweighed by the comment that ‘many’ participants ‘thought it unlikely that the data available in June would provide sufficient confirmation that the conditions for raising the target range for the federal funds rate had been satisfied’.
“The minutes did say that they ‘did not rule out this possibility’, but it’s hard to see the tone favouring a move in June now”.
Key Quotes
“It seems the Fed have moved closer to giving up on a June hike after the release of April's FOMC minutes last night. This pretty much confirms the market's expectation but it firmed it up more”.
“Although a ‘few’ members anticipated that the US economy would be ready for a move in June, this was seemingly outweighed by the comment that ‘many’ participants ‘thought it unlikely that the data available in June would provide sufficient confirmation that the conditions for raising the target range for the federal funds rate had been satisfied’.
“The minutes did say that they ‘did not rule out this possibility’, but it’s hard to see the tone favouring a move in June now”.