- BMO Private Bank
The minutes of the April Fed meeting, when the US central bank left interest rates on hold in line with economists' expectations, showed that officials believed the US economy could be ready for another interest rates hike in June. Most members of the policy-setting committee's said they looked forward to seeing signs that economic growth was gaining steam in the second quarter and that employment and inflation were firming, the minutes showed. Fed officials said recent economic data made them more confident inflation was climbing toward the 2% target and that they were less concerned about a global economic downturn. However, some policymakers were worried about a slowdown in US economic growth during the first quarter, when gross domestic product increase slowed to a two-year low of 0.5%. Yet others argued that ongoing strong job growth indicated the economy was still on track and the growth data could be flawed. Data since the end of April pointed to an increase in consumer spending and manufacturing output, supporting the view that economic growth was gaining momentum after stalling in the first quarter.
Some policy makers said they were worried financial markets could be roiled by a possible UK exit from the European Union in a vote next month or by China's exchange rate policies.
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