June Fed Rate Hike Odds Increase Despite Mixed Signals from Wall Street and Fed Officials

Bank of America maintains its base case expectation that the Federal Reserve will not implement a rate hike in June, but believes it's a "close call". Goldman Sachs economists also expect a pause in June, but acknowledge the strong economic data and wide range of views by FOMC participants make it a close call. The market is pricing in a 70% chance of a hike in June and a 100% chance of a hike in either June or July. Inflation rose 4.4% y/y in April, while personal spending surged 0.8% in the month.