Here’s Why the Federal Reserve Will Issue a Hawkish June Statement

The Federal Reserve is set to issue a hawkish statement, according to one expert, despite recent data showing the labor market took a worrisome turn last month. 'I know a lot of Wall Street thinks [Yellen] is going to be very dovish,' said David Nelson, chief strategist at Belpointe Asset Management, based in Greenwich, Conn. 'I think she's going to be more hawkish than people expect - I think she wants to keep [a July rate hike] alive and she wants to keep the market a little bit off balance because it would indicate that things are falling apart if she adds dovish commentary.' Most market participants, including Nelson, don't expect the central bank to announce a rate hike on Wednesday, amid the aforementioned weak May jobs report, but the Fed's messaging will be closely scrutinized. TheStreet's Scott Gamm reports from Wall Street.