Senior Fed official suggests skipping rate hike next month

The Federal Reserve has raised interest-rates 10 times since it began an aggressive campaign to tackle inflation and bring it back down to its long-run target of two percent.

A senior Federal Reserve official tapped for the number two position at the US central bank said Wednesday that pausing interest-rate hikes would give the Fed time to weigh additional economic data.

"Skipping a rate hike at a coming meeting would allow the Committee to see more data before making decisions about the extent of additional policy firming," Fed governor Philip Jefferson told a conference in Washington in prepared remarks.

The Federal Reserve has raised interest-rates 10 times since it began an aggressive campaign to tackle inflation and bring it back down to its long-run target of two percent.

Fed officials are now divided on the best path forward ahead of another interest-rate decision to be announced on June 14, with some in favor of continuing to hike and others coming out in support of a pause.

Jefferson added that "a decision to hold our policy rate constant at a coming meeting should not be interpreted to mean that we have reached the peak rate for this cycle," suggesting he did not think the Fed was necessarily done with interest-rate hikes going forward.

With two weeks before the next rate decision is announced, futures traders now assign a greater-than 60 percent chance that the Fed will follow through with another interest-rate hike on June 14, according to data from CME Group.