Fed officials say June rate hike could still happen

by MPA10 Apr 2015
They are, they’re not. The confusion around the Federal Reserve’s timing of an interest rate increase is confusing.

In March, the central bank insinuated it would it rely on data to decide when it would increase rates. The Fed said it was not convinced yet that the improvement in employment was good enough for a rate hike anytime soon.

However, two Fed officials said this week that the central bank still could increase rates in June, despite the weak economic data.

New York Fed President William Dudley and Fed Governor Jerome Powell have laid out scenarios in which the central bank could make its first move to raise rates earlier than expected and then proceed in a slow and gradual manner on further rate increases, according to Reuters.

"I could imagine circumstances where a June rate hike could still be in play," Dudley told the media outlet.

Recently released minutes from the Fed’s March 17-18 policy meeting also showed central bank officials are eager to get the rate hike process started. Several participants at the meeting said they were virtually certain June would be the right time for what would be the first rate hike since 2006, according to the minutes.