Fed officials expressed a degree of uncertainty regarding the slowdown in payroll employment gains in the minutes of their June 14 – 15 Federal Open Market Committee (FOMC) meeting.
Participants observed that transitory factors may have understated payroll growth, however many thought the underlying pace of growth had slowed from previous months.
Despite weaker labor market growth, participants noted that economic activity “appeared to have picked up,” citing growth in consumer spending and in the housing sector. The drag associated with net exports also appeared to have diminished some, but fixed investment remained soft.
Members noted that uncertainty regarding the U.K. referendum was an additional factor in policy deliberations, and that the outcome and its potential effect on economic and financial markets would need to be monitored closely.
At the conclusion of the meeting, the Committee unanimously decided to maintain the target federal funds rate at 0.25 – 0.50 percent.
Read the FOMC minutes.