Fed Minutes Show Possibility Of June Rate Hike
After seeing an upswing for most of the day, US stocks sank following the release of minutes from the Fed’s April meeting, which pointed towards the possibility of a June interest rate hike.
Fed officials said that if data showed an improving economy, a June hike could result—pushing back against market expectations, and some economists’ analysis, that a June hike is unlikely.
As of their March forecast, the Fed expected two rate hikes this year, though some investors predicted just one after early-year market turmoil threw a wrench in the central banks’ December plans, the Wall Street Journal reports.
"There is this widespread complacency this year that [Fed officials] won’t raise rates as many times as they said they would,” Wells Fargo global quantitative strategist Sameer Samana tells the Wall Street Journal. “That’s a risk.” [WSJ]