Federal Reserve officials believed it would be premature to hike interest rates in June even though most felt the U.S. economy was set to rebound from a dismal start to the year, according to minutes from their April policy meeting released on Wednesday.
Following a weak first quarter dogged by a west coast port strike and a severe winter, the economy appears to be improving. On the one hand the latest report offered a substantial negative revision to March payrolls, on the other it was the only month this year to deliver a sub-200,000 payroll reading
Yesterday’s market weakness has been attributed to worse that expected economic numbers, particularly the extremely disappointing 0.2% GDP growth for the first quarter. This was much worse than the expected tepid growth of 1%.