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Should FED increase interest rates in June 2016?

A leave vote from Britain (the Europes second biggest economy and its most influential
financial center) is expected to stir financial markets, cause a wide credit spreads, trigger a rush
into safe assets and strengthen the dollar.
The geopolitical risk will most likely delay rate increase until at least July, even though the hike
is supported by stronger U.S. growth and tight labor markets.
The stability of the dollar during the recent months gave FED a reason to consider increasing
the interest rates and it may be possible that officials may want to let the threat of Brexit pass
before taking steps to tighten financial conditions.
Fed Board Governor Daniel Tarullo expressed on Thursday his concern that Brexit would be a
factor to be considered at the Feds June policy meeting and that the British votes impact on
markets would be very significant.
If Britain will not leave EU, it could lead to continued disagreements in the ruling Conservative
party and be in disharmony with the rest of the EU.
So, the signal from Fed regarding a rate hike is clear: The only obstacle to the Feds two-year
struggle to normalize U.S. monetary policy and increase rates further is the upcoming Brexit
vote.

Reference:
http://fortune.com/2016/06/03/fed-hike-interest-rates-june/

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