Prospects of a federal interest rate hike when the Federal Open Market Committee meets July 26-27 dimmed with the release of minutes from the June meeting on Wednesday.
FOMC members disagreed about the economic outlook in the near term, but did agree it was “prudent to wait” for more information before deciding the next steps, the minutes said.
The members also were mindful of the global economy and risks abroad, particularly following the U.K.'s vote to leave the European Union, noted Putri Pascualy, managing director and senior credit strategist for Pacific Alternative Asset Management Co.
“In this post-Brexit world, the general sense seems to be that the U.S. economy is doing moderately well. However, the Fed is cognizant of the impact of its actions on the global economy as well as on potentially overshooting if the U.S. is negatively impacted by developments abroad. So this means lower for longer,” Ms. Pascualy said.