Investing.com - The Federal Open Market Committee noted the upcoming Brexit vote and weak jobs growth as factors for waiting to hike rate, according to rate minutes of the June meeting released Wednesday, suggesting the outcome of the U.K. referendum will weigh on future policy decisions.
"Members generally agreed that, before assessing whether another step in removing monetary accommodation was warranted, it was prudent to wait for additional data regarding labor market conditions as well as information that would allow them to assess the consequences of the U.K. vote for global financial conditions and the U.S. economic outlook," the minutes of the June 14-15 meeting said.
The committee "judged it appropriate to continue to leave their policy options open and maintain the flexibility to adjust the stance of policy," the minutes said.
Last month, the FOMC voted unanimously to leave rates steady amid weakening labor market conditions and the threat of a U.K. departure on the EU.
The CME Group's (NASDAQ:CME) Fed Watch tool has now priced out an interest rate hike for the remainder of the year. Since the Fed approved a 25 basis point hike last December, the FOMC has left the target range of its benchmark Federal Funds Rate between 0.25 and 0.50% at each of its four meetings this year.