so-called dovish approach including the first quarter GDP

Participants … discussed a number of factors suggesting that the apparent softness in spending in the first quarter was unlikely to persist. Most pointed to the steady improvement in the labor market as an indicator that the underlying pace of economic activity had likely not deteriorated as much as was suggested by the recent data on spending and production. Notably, solid job gains and real income growth, along with a high level of household wealth and relatively upbeat consumer sentiment, were expected to support a pickup in consumer spending after its slowdown in the first quarter.

Some participants saw limited costs to maintaining a patient posture at this meeting but noted the risks--including potential risks to financial stability--of waiting too long to resume the process of removing policy accommodation, especially given the lags with which monetary policy affects the economy. A couple of participants were concerned that further postponement of action to raise the federal funds rate might confuse the public about the economic considerations that influence the Committee's policy decisions and potentially erode the Committee's credibility.

There's Always Wiggle Room

Some participants noted that global financial markets could be sensitive to the upcoming British referendum on membership in the European Union.

so-called dovish approach including the first quarter GDP

Participants … discussed a number of factors suggesting that the apparent softness in spending in the first quarter was unlikely to persist. Most pointed to the steady improvement in the labor market as an indicator that the underlying pace of economic activity had likely not deteriorated as much as was suggested by the recent data on spending and production. Notably, solid job gains and real income growth, along with a high level of household wealth and relatively upbeat consumer sentiment, were expected to support a pickup in consumer spending after its slowdown in the first quarter.

Some participants saw limited costs to maintaining a patient posture at this meeting but noted the risks--including potential risks to financial stability--of waiting too long to resume the process of removing policy accommodation, especially given the lags with which monetary policy affects the economy. A couple of participants were concerned that further postponement of action to raise the federal funds rate might confuse the public about the economic considerations that influence the Committee's policy decisions and potentially erode the Committee's credibility.