Fed minutes show talk of June rate hike

The Federal Reserve is eyeing its June meeting for a potential rate hike, if the economy improves as expected.

Minutes from the central bank’s April meeting, released Wednesday, show that most Fed officials will be ready to hike in June, assuming the economy continues to show strength.

{mosads}“Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter … then it likely would be appropriate for the Committee to increase the target range for the federal funds rate in June,” the minutes stated.

A June hike would mark just the second for the Fed in nearly a decade; the central bank has slowly stepped away from the years of stimulus it pumped into the economy following the financial crisis and resulting recession. The Fed last raised rates in December.

The minutes stopped short of guaranteeing a June hike. Several participants expressed concern that the new economic data would not be clear-cut enough to justify a hike, while others were concerned that markets may not be adequately prepared for another rate increase.