The Federal Reserve.
WASHINGTON — The Federal Reserve appears ready to raise interest rates again. At a meeting of the Federal Open Market Committee, April 26-27, members appeared to echo concerns of the Federal Reserve officials, namely that the market is too complacent over the interest-rate-hike desires at the central bank.
Several Fed officials have said that June would be a possibility of another interest rate hike. The Fed raise its rate in December by one-quarter percent from its historic near zero percent rate. It was the first rate hike in almost a decade and, at the time, the central bank indicated that it could raise rates up to four times in 2016.
Those plans were slowed by a volatile stock market that was shaken early in the year by concerns over a possible slowdown in China’s economy.
Those concerns have subsided somewhat as the markets have stabilized. The Fed is hoping to avoid causing shockwaves by telegraphing a possible hike well in advance of the June 14-15 Fed meeting.
“They are trying to make it abundantly clear that the upcoming meeting is “live,” Thomas Simons, economist at Jefferies told Martketwatch.com. “This does not pre-commit the FOMC to a June rate hike.”
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