The March report on employment in the US could push the Fed to raise rates in June

Analysts believe that the March employment report could push the Fed to raise interest rates in June. In March, the US economy added 215,000 new jobs, while the unemployment rate rose to 5% from 4.9%. «The Fed is likely to raise rates at the June meeting,» — says David Berson, chief economist at Nationwide Insurance. «The process of monetary tightening will be gradual,» — adds Berson. Against the background of encouraging employment report, traders expect a rate hike in June, with a probability of 30%. «We expect that the increase is still going to happen in June,» — says Millan Mulroy, Deputy Head of Unit TD Securities macroeconomic strategy. Jim O’Sullivan, chief economist at High Frequency Economics, also adheres to similar opinion. Concerns over a slowdown in the world economy makes the Fed to lower its forecasts for tighter monetary policy. Let us remind you that speaking to the Economic Club in New York on Tuesday, Yellen pointed out that, despite the improvement in the domestic economic situation, external risks are still increasing. According to Berson, a rate hike at the April meeting, can be completely eliminated.