Us: Federal Reserve Split On Timing Of İnterest Rate Hike

The U.S. Federal Reserve is split between those who want an interest rate hike in June and those who want one later.

That is what emerged from the minutes of the Federal Reserve's March monetary policy committee, which were released Wednesday.

Federal Reserve Governor Janet Yellen said in her last press conference that a hike could come as early as June, but was more likely to be delayed until a firm outlook showing less than two percent inflation could be seen.

But the minutes show that a June rate hike is still quite possible.

Some committee members said low oil prices and a strong dollar are making imports cheaper for U.S. consumers, so a rate hike should be delayed.

Although job growth has accelerated substantially during the past year, wage growth has been sluggish and inflation remains well below the Fed's annual less than two percent target.

Yellen has pointed to wage growth and inflation as key figures. In the minutes, she said the Fed must be "reasonably confident" that inflation will gain momentum in the near term. She also said she would be uncomfortable raising rates if inflation was to weaken further.

The most recent employment statistics, released by the Labor Department on April 3, were poor, with new hires well below what analysts had forecast.

That may be sufficient to delay an interest rate hike, but it is clear that the Fed is divided on the subject.

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