Markets in a ‘show me’ state
FOMC members Lockhart and Williams tried to send a message that a hike at the June meeting is possible on Tuesday.
“If the data continue to be encouraging I would certainly entertain some policy move in June,” Lockhart told the FT today. “I don’t think June should be taken off the table. I am of the view – others, my colleagues have said this – that markets may be reading this more pessimistically than I am. The [market-implied] probability of a rate increase in June is quite low.”