Fed likely to prepare ground for a post-summer rate hike at June FOMC meeting

Buoyed by improving data and rising wages, the Fed may emphasise the first rate hike is getting closer. Debate is likely to focus on growth; this year's forecast and potential growth estimates may be lowered. 2015 'dot' may remain unchanged; other 'dots' may be lowered including the 'terminal rate' forecast.

"We think the 16-17 June FOMC meeting will be all about preparing the ground for a post-summer rate hike. This should support our scenario that the first rate hike will be in Sept. A July rate hike remains a low-probability scenario, we think, as the Fed probably wants to see more evidence of a Q2 GDP rebound, and the Q2 wage/inflation picture. The Fed may also gauge market reaction over the summer." notes Standard Chartered in a report