Investing.com – Minutes of the latest Federal Reserve meeting hinted at a dovish approach to interest rate hikes in the United States, disappointing hawks that were expecting a more aggressive pace of monetary tightening.
Most Fed policymakers thought it likely another interest rate increase if the U.S. economic outlook remains intact, the minutes showed on Wednesday.
But they also revealed the Fed would tolerate inflation rising above its goal for a time, suggesting it would not raise the tempo at which it increases interest rates.
The probability of three more rate hikes by the end of this year, rather than two, decreased immediately after the release of the minutes, according to Investing.com’s .
Investors have fully priced in a rate rise at the Fed’s next policy meeting on June 12-13. However, Wall Street remains divided over how many more time the central bank will raise interest rates after that.
The and lost momentum, pulling back from recent highs after the minutes of the Fed’s last policy meeting were seen as dovish.
Several market-moving reports, including the and the for the first quarter, are due next week, and investors will be watching for more clues on the current rate-hiking path.
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Source: Investing.com
