Fed’s Dudley Sayas June Rate Hike Still Possible

New York Federal Reserve President William Dudley said on Wednesday the Fed could still hike rates in June despite a weak start to the year, if economic data pick up over the next two months.

“I could imagine circumstances where a June rate hike is still in play. If the next jobs report is strong…if second-quarter GDP look like it is bouncing quite sharply,” Dudley said in an interview with Reuters.

He said there were still good reasons for the Fed to err on the side of hiking rates too late, in order to make sure as many workers as possible are pulled into the labor force. In addition the weak first-quarter data and recent weak jobs report means “the bar is probably a little bit higher” for a June hike.

via Reuters

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 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