Recently released minutes from the Federal Reserve’s May 2-3 meeting showed a division among officials regarding support for further interest rate hikes.
The minutes also indicated that officials still view inflation as “unacceptably high” and foresee a “mild recession” later in the year. Despite this news, the US dollar held onto gains.
Since the Fed’s rate hike in May, the US economy has seen mixed data, with the Consumer Price Index (CPI) slowing in April, but the Core CPI rising from the previous year.
The Fed’s preferred inflation gauge, the April Core Personal Consumption Expenditure Price Index, will be released on Friday.
With potential for a pause in interest rate hikes at the upcoming June 13-14 meeting, the market remains uncertain of what’s to come.
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