Fed Still Uncertain About Rate Hike Timing, June Minutes Show

(RTTNews) - In a report made somewhat irrelevant by the UK's shocking Brexit decision, the minutes of the June Federal Reserve meeting revealed officials are still leaning toward raising interest rates this year.

"Most participants judged that, in the absence of significant economic or financial shocks, raising the target rate for the federal funds rate would be appropriate if incoming information confirmed that economic growth had picked up, that job gains were continuing at a pace sufficient to sustain progress toward the Committee's maximum-employment objective, and that inflation was likely to rise to 2% over the medium term," the minutes of the June 14-15 meeting said.

However, there was no specific guidance offered about the timing of such a rate hike.

Analysts say a July rate hike is off the table, given weakness in the U.S. jobs market and the unexpected decision by U.K. citizens to leave the European Union.

"A couple of members" said they would need "sufficient evidence to increase their confidence that economic growth was strong enough to withstand a possible downward shock to demand and that inflation was moving closer to 2% on a sustained basis."