FOMC Minutes: Most Fed Officials Saw June Hike 'Likely'

The transcript discusses the Federal Reserve's considerations for a potential rate increase in June, highlighting concerns about market readiness and investor perceptions. It reviews economic conditions, including labor market strength and inflation progress, as factors influencing the decision. The April meeting left rates unchanged, with some participants advocating for a rate hike. The transcript also compares March and April meeting minutes, noting improved financial conditions and diminished concerns about global developments.

What was the main concern of Fed officials regarding the market's readiness for a rate move in June?

• The market was indifferent to the possibility of a rate increase.

• The market was too focused on global developments.

• The market was not properly assessing the likelihood of a rate increase.

• The market was overestimating the likelihood of a rate increase.

What was the general agreement among participants regarding the economic conditions by late April?

• Conditions had worsened significantly.

• Conditions were deteriorating rapidly.

• Conditions had improved but were still difficult to measure.

• Conditions were stable and predictable.

Which Fed President dissented from the committee decision to leave rates unchanged in April?

• Chicago Fed President

• Kansas City Fed President

• New York Fed President

• San Francisco Fed President

What was one of the reasons for the diminished concerns about global developments?

• Decreased consumer spending

• Increased global trade tensions

• Rising geopolitical risks

• Improved federal financial conditions

How did the Fed view the potential impact of Brexit on financial markets?

• As a reason to delay the rate move

• As a major disqualification for a rate move

• As a minor concern with no impact

• As a potential factor but not disqualifying