The representatives of the US Federal Reserve decided that the US economy may be ready for another rate hike in June; this is what can understand from the minutes of the April meeting of the Fed, released on Wednesday.
Most members of the Federal Open Market Committee meeting on April 26-27, said they would like to see signs of recovery in economic growth in the second quarter and the strengthening of employment and inflation, showed the protocol.
"Then, most likely, it would be appropriate for the committee to raise the target range for the federal funds rate in June," – is said in the report.
The assumption that the June rate hike is bound to be on the agenda indicates that the Fed is closer to tighten monetary policy than the Wall Street expected. The Central Bank raised interest rates in December for the first time in nearly a decade.
The recent economic data strengthened confidence in the officials that inflation is close to the 2 % target level, and also they expressed less concern about the global economic slowdown, evidenced by the protocol.
Some officials at the meeting were worried about the US economic slowdown in the first quarter, when GDP grew by 0.5 % in annual terms - a minimum of two years.
However, other members of the regulator have said that a steady increase in the number of jobs indicates that the economy is on the right track, and GDP data are distorted.
"Most of the members pointed to a steady recovery of the labor market as an indicator that the trajectory of economic activity is probably not worse," – is said in the report.
Some officials at the April meeting expressed fears that the possible exit of Britain from the European Union or China's currency policy may hit the financial markets.
In April, the regulator has kept its key interest rate in the range of 0.25-0.50 %, but made it clear that it was confident in the prospects for the US economy, leaving the door open to raise the rates in June.