Less than two weeks ago, Fed watchers had seen a chance for a rate hike at this meeting, but the 38,000 nonfarm payrolls in the May jobs report were about 100,000 below some of the lowest forecasts.
"If it hadn't been for the employment report, there was a decent chance they could've gone this week," says Goldman Sachs' chief U.S. economist Jan Hatzius, speaking on "Closing Bell." "Now the question is what do they signal about what happens after the June meeting for July, September."
He says there is a chance the Fed could still hike in the next couple of months, but some Fed watchers say Fed Chair Janet Yellen will provide a time frame and will likely leave the options open.
"We have a 35 percent chance on July and the same on September," Hatzius explains. "So I think there's a decent chance the Brexit vote is a factor, but I think what the most important factor is whether the next employment report shows the last one to be an outlier on the low side."
Meanwhile, markets have been sizing up the pending June 23 U.K. vote on whether to leave the European Union. Fed officials have warned that volatility around the Brexit vote could impact their rate hiking decision, so odds had not been high for a June hike, even before the employment report.
The Brexit has been weighing on European stock markets, and is now rattling the U.S. stock market. The S&P 500 lost 17 points to 2,079 Monday. The CBOE Volatility Index, or VIX has shot up to 20.97, a jump of more than 50 percent in five trading sessions, implying expectations for big swings in the stock market.