“Several noted if the economy evolved along the lines of their current outlooks, then further policy firming after this meeting may not be necessary” — Fed parlance for a pause — the minutes said.
“We think it won’t be difficult to get consensus on a June pause if it is coupled with the promise that further hikes could be needed if the data do not cooperate,” Ellen Zentner, chief U.S. economist at Morgan Stanley, wrote in a research note. At the Fed meeting this month, officials “generally expressed uncertainty about how much more” they should raise interest rates, the minutes said.
At a news conference after the Fed officials met on May 3, Powell said there had been a discussion about forgoing rate increases at future meetings, though he wouldn’t say how many officials had favored doing so.