US Federal Reserve June minutes show labour market and Brexit fears

Billy Bambrough
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Fed Chair Janet Yellen Speaks At Fed Reserve Community Development Research Conference
The market is closely watching for signs from Fed chair Janet Yellen over their plans for future rate rises (Source: Getty)

The latest US Federal Reserve minutes have shown members agreed they should wait for further data on the labour market and the impact of the UK's European Union membership vote before raising rates.

Most were in agreement rates should be raised if economic conditions improved, though officials said May jobs payrolls raised uncertainty.

The meeting was held a week before the UK's shock vote to leave the European trading bloc sent shock waves through the global economy.

The Fed has made it clear since the vote it is now going to wait-and-see whether the referendum has a negative impact on US growth.

Fed policymakers have recently signalled they are planning two more rate rises this year, though the futures market suggests traders are not expecting the Fed to move until 2018.

Last month the US Federal Reserve voted to keep its interest rates on hold, inline with market expectations.

It had previously been thought the Fed would hike rates for the second time in a decade last month though sentiment soured ahead of the meeting.

The US central bank has held the target range for the federal funds rate at 0.25 per cent to 0.5 per cent, where it has been since December last year.

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