Economics
One Word From the Fed Minutes That Should Temper Your Rate Hike Expectations
The importance of parsing Fedspeak.
Is the Fed experiencing a failure to communicate?
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Investors may be misjudging how hawkish the minutes from the Federal Reserve's April meeting really were.
The communique, released on Wednesday afternoon, showed that "most participants judged … it likely would be appropriate for the Committee to increase the target range for the federal funds rate in June" if economic data continued to firm. The odds of an interest rate hike in June implied by federal funds futures, which ended at 12 percent on Tuesday, rose to 32 percent by the end of Wednesday's session.