WASHINGTON—Minutes released from the Federal Reserve’s meeting in early May indicate its members are still unsure whether they will move on rates when they meet again in June, but they appear to be inclined to do so.
“Members generally judged that it would be prudent to await additional evidence indicating that the recent slowdown in the pace of economic activity had been transitory before taking another step in removing accommodation,” the Fed said in a statement after releasing the minutes following the standard three-week delay.
The minutes also describe in some detail a potential plan for reducing the Fed’s asset holdings, stating that “it likely would be appropriate” to begin that process by the end of the year.
The minutes show Fed officials are optimistic about the economic outlook, and in particular that they expected a rebound in consumer spending, according to the account. Policymarkers referred to the first-quarter economic slowdown as “transitory,” and indicated support for a rate increase if economic data continues to improve.
The Fed raised its benchmark rate to a range between 0.75% and 1% at its March meeting.