Still, some tweaking of the language may be necessary, including a downgrade to the assessment that household spending has been “increasing at a moderate rate.” Sales at retailers unexpectedly fell in March, led by the biggest drop in autos in a year.
Kansas City Fed President Esther George is likely to dissent for a second consecutive meeting, favoring a quarter-point rate hike, according to Perli. George, in a speech this month in York, Nebraska, warned that low interest rates can foster asset-price bubbles including for real estate.