According to recently released minutes, most of the Federal Reserve’s interest-rate committee members are ready to raise rates in June, so long as the economy continues to show spark.
The financial community has been on the edge of their seats since rates ticked up in December, moving from 0.25 percent to 0.5 percent. Now, it looks like the next rate could be nearing.
According to the minutes: “Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter, labor market conditions continuing to strengthen, and inflation making progress toward the Committee’s 2 percent objective, then it likely would be appropriate for the Committee to increase the target range for the federal funds rate in June.”
Whatever the decision, transparency is key. Fed officials note that some financial markets might not anticipate a June hike, so communicating over the next several weeks will be crucial.
The next Fed meeting will be held on June 14 and 15, and Chairwoman Janet Yellen will be speaking on June 6 in Philadelphia. Rumor has it this speech—held just three days after the release of the May jobs report—will be critical.
Is the economy healthy enough for another uptick in interest rates? The answer may arrive in June.