(Repeat) Minutes from the May 1-2 meeting.......>

FED: (Repeat) Minutes from the May 1-2 meeting showed participants exp. 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, as participants agreed that the best time

would be at a meeting where a hike is exp. 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 > 2% goal 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

econ. activity, but several said it should continue to be monitored as it has a

history of predicting increased recession risk.