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Yellen may soothe but not that much

Fed Chair Janet Yellen will try not to rock already shaky markets Wednesday, but she is expected to continue to say the Fed hopes to hike interest rates.

Fed watchers say the weak May jobs report, with just 38,000 payrolls, ended all chances the Fed would hike rates at its meeting this week, even though it had signaled a hike was possible this summer ahead of the June 3 report. Now market uncertainty over the U.K. Brexit vote gave it yet another reason to pause.

"It pulled the rug out from under an interest rate hike and probably a summertime rate hike. The jobs number took June 15 off the table, but events on Brexit since then would probably have taken it off the table even if the economy was looking good. You're starting to get agitated financial markets and you've seen a sharp run up in the VIX," said Ward McCarthy, chief financial economist at Jefferies.