Today's strong employment readings support that action," said Kathy Bostjancic, chief economist for Nationwide.įed policymakers in recent weeks have tried hard to keep their options open, with those inclined towards more hikes acknowledging a case to hold steady, and those worried about higher rates acknowledging stubbornly high inflation may require them to slow the economy even further.Īmid those competing views of the world - one where inflation remains the dominant risk, one where the economy is about to buckle - officials at the Fed's June 13-14 meeting will in new economic projections have to give the sort of hard guidance through numbers that they've been reluctant to provide through words.
central bank seems "inclined to skip tightening in June but could resume tightening in July.
Yet a jump in the unemployment rate to 3.7% from 3.4% in the prior month, a slowing in the pace of hourly wage growth, and a decline in hours worked left investors and analysts still expecting the Fed to stay on hold for at least one meeting to look for more confirmation that either the economy is cooling or higher rates are warranted. Key inflation data since the last policy meeting also rose. central bank's run of 10 straight rate increases later this month while leaving the door open to a future rise in borrowing costs.įor a central bank that says it is "data-dependent," the decision may be more complex than it wants, with the release on Friday of a May employment report that blew through expectations as employers added 339,000 jobs across a broad set of industries. WASHINGTON, June 2 (Reuters) - Federal Reserve officials, whose hike, skip or pause messaging on interest rates has become a high-stakes word puzzle for investors, seem ready to end the U.S.
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