FOMC Has Spoken; I say, STOP Sending Me Mixed Signals

Markets

So the Federal Open Market Committee minutes are out and the central bank may be looking for a rate hike in June.

Well, maybe....if economic conditions improve. (I smell a scapegoat!)

As Kitco News reported shortly after the release, the minutes read, "Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter, labor market conditions continuing to strengthen, and inflation making progress toward the Committee’s 2 percent objective, then it likely would be appropriate for the Committee to increase the target range for the federal funds rate in June."

Based on CME's FedWatch tool, which looks at the market's expectations for rate hikes this year, futures are now pricing in a 30% chance of tightening at the Fed's June meeting. This was at around 11% just a few days ago.

CUE Fed officials. Expect more mixed comments from them in the coming days. My sole message to the Feds: STOP SENDING ME MIXED SIGNALS.