Federal Reserve officials divided over timing of interest rate hike
US FEDERAL Reserve members clashed during their meeting last month over whether to begin hiking interest rates in June or to wait until the second half of this year, according to the minutes from the meeting released yesterday.
Several thought it would be a prime time, but others argued the strong dollar and low global oil prices would continue to inhibit inflation, meaning the Fed should delay a rate hike.
A couple of participants even suggested the economic outlook would not call for liftoff until 2016.
The minutes show that “almost all” officials at the Federal Open Market Committee were in favour removing the forward guidance that the Fed would be “patient” in beginning to normalise monetary policy thanks to progress being made in achieving its target of maximum employment. However, they agreed that an increase in the target range for the federal funds rate was unlikely in April.