Forget the debate between the "leave" and "remain" camps: It's the timing of the 'Brexit' referendum that worries some Fed watchers.
British voters are set to decide on June 23 whether or not to leave the European Union, just one week after the Federal Reserve's June 14-15 policy meeting. Some economists say that for a Fed that has become increasingly attuned to global and financial developments, the uncertainty around the U.K. vote will force the Federal Open Market Committee to remain on hold.
"With the Brexit referendum just eight days [after] the meeting, the bar for the domestic data is pretty high," wrote Pantheon Macroeconomics' chief economist, Ian Shepherdson, in a note. "We think the decision will be closer than markets believe, but ultimately we think Dr. Yellen will prefer to wait until after the vote, and move in September."