A June pause in rate hikes would be a close call for Fed officials, minutes of last meeting show

May 24, 2023, 11:04 AM

File - Federal Reserve Chairman Jerome Powell speaks during the Thomas Laubach Research Conference ...

File - Federal Reserve Chairman Jerome Powell speaks during the Thomas Laubach Research Conference at the William McChesney Martin Jr. Federal Reserve Board Building in Washington, Friday, May 19, 2023. On Wednesday, the Federal Reserve releases minutes from its May meeting when it raised its benchmark lending rate by another 25 basis points. (AP Photo/Andrew Harnik, File)
Credit: ASSOCIATED PRESS

(AP Photo/Andrew Harnik, File)

WASHINGTON (AP) — Federal Reserve officials were divided earlier this month on whether to pause their interest rate hikes at their upcoming meeting in June, according to the minutes of their May 2-3 meeting.

“Several (policymakers) 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 from the May 2-3 meeting said.

At the same time, “some” officials said that the persistence of high inflation meant that “additional (rate hikes) would likely be warranted at future meetings.”

Yet in the language used in the minutes, “several” is considered to be more than “some,” suggesting that those favoring a pause may have the upper hand.

In addition, Chair Jerome Powell and the officials closest to him signaled in speeches last week that they were likely to support a pause in rate hikes at their next meeting in mid-June.

The Fed raises its key rate to lift the cost of mortgages, auto loans, credit card borrowing, and business loans. By making borrowing more expensive, the Fed seeks to slow growth and inflation. Fed officials have raised their benchmark rate for 10 straight meetings, to about 5.1%, a 16-year high.

United States News

This image released by HBO shows Sydney Sweeney in a scene from "Reality." (Lily Olsen/HBO Max via ...

Associated Press

Movie Review: Sydney Sweeney is brilliant in ‘Reality,’ based on true story of NSA whistleblower

“Reality,” a new movie starring Sydney Sweeney, is largely set in one empty room. There is nothing on the walls. There are no chairs or rugs, just a stark and ugly room in a nondescript rental property in a downtrodden neighborhood. Its script is as minimalistic — lifted directly from the transcript of one long […]

15 hours ago

FILE - Frank, a homeless man sits in his tent with a river view in Portland, Ore., on June 5, 2021....

Associated Press

Portland mulls ban on daytime camping amid sharp rise in homelessness

PORTLAND, Ore. (AP) — City Council members in Portland will decide Wednesday whether to ban homeless camping during daytime hours in most public places, a move that aims to bring the city into compliance with a new state law and appease the growing number of residents frustrated by a deepening yearslong homelessness crisis. Portland is […]

15 hours ago

Mike Brennan, Director of the National Hurricane Center, speaks during a news conference, Wednesday...

Associated Press

It’s time to prepare for the 2023 Atlantic hurricane season

MIAMI (AP) — It’s time for residents along the southeastern U.S. coastlines to make sure their storm plans are in place as the 2023 Atlantic hurricane season gets underway on Thursday. Forecasters are predicting a “near-normal” season, but Mike Brennan, the new director at the National Hurricane Center in Miami, stressed during a Wednesday news […]

15 hours ago

Associated Press

Federal judge halts Missouri execution of man convicted in jail break killings

COLUMBIA, Mo. (AP) — A federal judge on Wednesday halted next week’s scheduled execution of a man convicted of killing two Missouri jailers amid questions about the literacy of a juror in the case. U.S. District Judge Stephen Bough ruled that Michael Andrew Tisius’ execution at the state prison in Bonne Terre should be delayed […]

15 hours ago

Associated Press

Florida baby left inside hot car dies while parents are at church service

PALM BAY, Fla. (AP) — An 11-month-old baby died after being left alone in a hot car while her parents were inside a church for services along Florida’s Space Coast, authorities said. The baby girl had been in the car outside the storefront church in Palm Bay, Florida, where her parents are pastors, for three […]

15 hours ago

This image released by Apple TV shows Brendan Hunt, from left, Jason Sudeikis and Brett Goldstein i...

Associated Press

‘Ted Lasso’ finale proved its whole point — that those who are stuck can overcome (SPOILERS)

NEW YORK (AP) — Roy Kent cries. Nate Shelley apologizes. Rebecca Welton lets her anger go. Trent Crimm finishes his book. Keeley Jones embraces her strength. And the kind-to-a-fault but often lost Ted Lasso finally — after three seasons, but arguably after nearly a lifetime — figures out exactly where he needs to be. Criticized […]

15 hours ago

Sponsored Articles

...

OCD & Anxiety Treatment Center

5 mental health myths you didn’t know were made up

Helping individuals understand mental health diagnoses like obsessive compulsive spectrum disorder or generalized anxiety disorder isn’t always an easy undertaking. After all, our society tends to spread misconceptions about mental health like wildfire. This is why being mindful about how we talk about mental health is so important. We can either perpetuate misinformation about already […]

...

Desert Institute for Spine Care

Spinal fusion surgery has come a long way, despite misconceptions

As Dr. Justin Field of the Desert Institute for Spine Care explained, “we've come a long way over the last couple of decades.”

...

Day & Night Air Conditioning, Heating and Plumbing

Company looking for oldest air conditioner and wants to reward homeowner with new one

Does your air conditioner make weird noises or a burning smell when it starts? If so, you may be due for an AC unit replacement.

A June pause in rate hikes would be a close call for Fed officials, minutes of last meeting show