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Fed likely to avoid rate hike

03 June 2016 15:07 (UTC +04:00)

Baku - APA-Economics. The U.S. Federal Reserve may be forced to delay a rate hike at its June meeting because of mounting concern over the economic fallout from Britain's vote on whether to leave the European Union, Reuters reported.

The geopolitical risk likely will push any rate increase until at least July, despite apparent consensus among Fed officials that a hike is warranted by stronger U.S. growth and tight labor markets.

The Fed's June 14-15 rate-setting meeting comes just a week before the British vote on June 23. A "leave" vote is expected to roil financial markets, cause credit spreads to widen, trigger a rush into safe assets and bolster the dollar.