Hawkish Fed Minutes

  • 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.

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