- The Fed’s April meeting minutes showed that officials said an interest-rate increase in June was possible if incoming data showed an improving economy.
- Officials also sought to push back against market expectations that a move at its next meeting was unlikely, the minutes showed.
- The minutes were surprisingly hawkish.
- The minutes suggest a much higher risk of a June rate hike than financial markets are currently pricing in.
- Ahead of the release of the minutes, federal-funds futures, used by investors and traders to place bets on central-bank policy, showed a 19% chance of a rate increase at the Fed’s June meeting. The odds rose to 30% after the release, CME data show.