US interest rates could rise in June

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US Federal Reserve building in Washington DCTwin copyright Getty Images

The US Federal Reserve could increase involved rates next month if the economic data support such a influence, the central bank’s latest minutes show.

But policymakers suggested they tenderness investors had not fully accepted such a move could come that without delay.

The bank will look for signs the economy, employment and inflation are firming prior to taking action.

The Fed remains wary of external factors, including a practicable UK vote to leave the European Union.

The Fed next meets a week in front the UK referendum on staying in or leaving the EU.

Some analysts suggested that the Fed may honest delay a decision on rates for fear of unsettling global markets as imaginable Brexit looms.

Sal Guatieri, senior economist at BMO Capital Markets, state: “A super-cautious [Fed Chair Janet] Yellen might well gap for more convincing evidence of a sustained pickup in the economy and a resolution of Brexit imperils before pulling the trigger in July.”

Pick-up

The bank has kept moment rates between 0.25% and 0.5% since December.

The Fed minutes said brand-new economic data made them more confident inflation was mobile up towards its 2% target.

The US government said this week that the consumer consequence index rose 0.4% in April, reflecting higher energy costs.

Although new figures showed the US economy only grew at 0.5% in the first direction – a two-year low – the Fed’s committee said that recent rises in employment lead one to believed that would pick up.

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