Fed Minutes Show Member Are Divided on Timing of Rate Hike

Fed officials disagreed widely last month on when they might begin lifting interest rates from record lows.

Minutes of the March 17-18 meeting reveal that several policymakers predicted a rate hike in June, while others concerned about low inflation didn’t think a rate hike would be warranted until later this year. Still others said the economy wouldn’t be strong enough for an increase until 2016.

The Fed’s benchmark interest rate has been near zero since December 2008.

In the statement the Fed issued after its meeting, it opened the door to a rate increase this year by no longer saying it will be “patient” in starting to raise its benchmark rate. The minutes show that policymakers nearly unanimously agreed on the wording change.

via Kitco

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza