Fed Officials Hint at Pause in June Rate Hike Decision

Federal Reserve Governor Philip Jefferson and Philadelphia Federal Reserve President Patrick Harker suggested that the central bank could pause rate hikes at its next policy meeting in June. The comments come as the markets raise their expectations for a rate hike in June following the release of new labor market data showing that job openings in April rose to their highest level since January. Jefferson and Harker emphasized that a pause in June wouldn't necessarily mean the Fed was done hiking rates. Jefferson also noted that higher interest rates and lower earnings could test the ability of businesses to service debt, while Harker said he wanted to look at two key pieces of data: the May jobs report due out Friday and another read on inflation via the consumer price index on the first day of the Fed's next policy meeting, June 13.