FXStreet (Córdoba) – One member of the Federal Open Market Committee was ready to hike rates in June while other members indicated that they would need to see more evidence that economic growth was “sufficiently strong” and labor market conditions “had firmed enough” according to the minutes of Fed’s June 16-17 policy meeting.
According to the minutes, a number of Fed officials warned against a “premature” increase in interest rates.
“The committee concluded that, although it had seen some progress, the conditions warranting an increase in the target range for the Federal-funds rate had not yet been met and that additional information on the outlook, particularly for labor markets and inflation, would be necessary before deciding to implement such an increase”, FOMC minutes read. “One member, however, indicated a readiness to take that step at this meeting but also expressed a willingness to wait another meeting or two for additional data before raising the target range”.
Minutes showed concerns Greek crisis could hurt US recovery as noted: “uncertainty about whether Greece and its official creditors would reach an agreement and about the likely pace of economic growth abroad, particularly in China and other emerging market economies.”
Minutes also showed that alongside the statement, the Fed plans to issue a new “implementation note” that would convey operational details regarding the setting of its policy tools when it decides to hike rates.
Fed Chair Janet Yellen will be giving its semiannual testimony next week.
(Market News Provided by FXstreet)