Fed Bullard Says June Rate Hike Chances Are Lower Now

It’s a “fair assessment” that the chances of a June rate hike are now much lower, St. Louis Federal Reserve President James Bullard told The Wall Street Journal on Monday.
Following a startlingly weak jobs report last Friday, Bullard told the Journal that he would rather the Federal Reserve raise rates on the back of positive economic news. Still, he said that he maintains an open mind and won’t “prejudge” the outcome of the June FOMC meeting, wherein central bank members will decide whether to adjust the Fed’s interest rate target.

In fact, Bullard told the Journal that it remains “possible” for the Fed to hike rates in July.

CME’s FedWatch tool said Monday morning that the probability of a rate hike was about 6 percent for June, and 37 percent for July.

via CNBC

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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