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Fed Divided on June Rate Increase, but Soft Data May Prove Deciding Factor

Wall Street Journal (04/08/15) Jon Hilsenrath; Ben Leubsdorf

U.S. Federal Reserve officials remain divided about whether the Fed should increase interest rates in June, and with recent soft economic data, including a decline in hiring, a midyear move could be less likely. Inflation has remained below the Fed’s 2% objective for nearly three years, and some officials expect the trend to continue as energy prices fall and the U.S. dollar remains strong. Fed chairman Janet Yellen now faces the task of bridging the gap between the officials.