July interest rate hike not far-fetched, close examination of Fed voters’ stance shows

Wed, June 15, 2016


The Federal Reserve is expected to keep interest rates unchanged on Wednesday as a result of the weak May jobs report but a hike as soon as July is not far-fetched, based on a close examination of where officials stand.

…Lou Crandall, chief economist at Wrightson ICAP, said after the jobs report, three things are needed to get a majority to back a July rate hike.

There could be no “serious” financial market dislocations from the Brexit referendum, the May job report has got to be shown as not the start of a trend and there can’t be any more deterioration in inflation expectations.

“Everyone is in the same camp they were in, but they are data contingent,” Crandall said.