FOMC Minutes from the May 1-2 meeting showed....>

FED: FOMC Minutes from the May 1-2 meeting showed that participants 

expect that if incoming data confirm their current outlook, "it would 

likely soon be appropriate for the Committee to take another step in 

removing policy accommodation," perhaps a hint toward a June hike.

- The participants also discussed setting the interest paid on excess 

reserves (IOER) "modestly below the top range for the federal funds rate." 

The change could happen as soon as the June meeting, as participants 

agreed that the best time would be at a meeting where a FFR hike is 

expected to allow for better communication.

- Participants also said it may be necessary to soon alter the forward 

guidance in the statement about the FFR remaining below its longer run 

level or that it "remains accommodative."

- A few participants noted that inflation could move above the 2% 

objective temporarily, but it was noted that would be consistent with 

the symmetric objective. 

- A few suggested the flatter yield curve may not be a good predictor of 

future economic activity, but several said it should continue to be 

monitored as it has a history of predicting increased risk of recession.