The debate about the timing of a rate hike by the Federal Reserve is between September or December, according to former senior official.
According to a note from Greg Valliere, chief political strategist at Potomac Research Group, former Fed Vice Chairman Donald Kohn says a June rate hike is off the table following weaker-than-expected April retail sales data.
Kohn, who worked at the Fed for 40 years before retiring in 2010, now briefs clients at Potomac Research.
The retail sales report, released Wednesday, hints at a weaker bounce back in second quarter growth than many economists had expected.
Also see:Retail sales flat in April as gas savings continue to be pocketed
Federal Reserve Chairwoman Janet Yellen has said the central bank will start considering rate hikes at the June meeting. Interest rates have been near zero since the end of 2008.
Futures are pricing in the first rate hike coming in December, according to the CME Group’s FedWatch calculator.
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