The Rate Hike Saga: Fed Was Cautious In April—What Does This Mean For June?
The caution and disagreement shown by the Fed last month in its debate over the (now unlikely) April rate hike brings the spotlight forward to the June session.
At the last meeting several officials argued in favor of an April rate hike and others feared raising rates would send the wrong signal, worrying that slowing world growth could reduce corporate investment plans and hold back US exports, Bloomberg reports.
As the state of the economy still stands in question, will these disagreements carry forward to June? And will the Fed take be cautious once more?
Time will tell, but one thing is certain—the March meeting marked an evolution in the Fed’s policy approach as central bankers give more weight to the impact of slowing growth abroad. [Bloomberg]
