Fed’s Powell in the spotlight as pressure grows to ‘fish or cut bait’ on rates

Wall Street, small businesses and potential homebuyers may all breath a sigh of relief if the Federal Reserve chooses not to raise interest rates at its policy meeting next month, as many traders and analysts expect.

But U.S. central bank officials are not only still on the fence about a pause in their 14-month tightening cycle, they are only starting to hash out whether to frame that decision as an extended halt to the aggressive run of rate hikes or a mere “skip” to give the economy some breathing room, with more borrowing cost increases coming soon if inflation does not decline.

Between the possibility the Fed may deliver a rate hike at its June 13-14 meeting and the uncertainty around how policymakers might describe a decision not to, there’s no guarantee of clarity soon from a central bank whose officials are beginning to diverge over what should happen next.

If there is any steer to come from the top, it could happen on Friday when Fed Chair Jerome Powell speaks on a monetary policy panel at a U.S. central bank staff research conference in Washington. The panel is scheduled to begin at 11 a.m. EDT (1500 GMT).

This report’s information was first seen on REUTERS; to read more, click this link.