A June skip jumps to the fore following latest Fed comments

Federal Reserve officials suggest skipping a June rate hike, resulting in a quick reversal of market expectations, as the US central bank weighed the value of caution against still-strong inflation data. Governor and vice-chair nominee Philip Jefferson said any decision to hold rates steady should not be viewed as the end of the tightening cycle. His remarks were taken as a cue, two days before the start of a blackout period that prohibits further public comment about the 13-14 June policy meeting. The rate hike skip has now become jargon for an emerging compromise.