FED ON RATE HIKE: “There is no need for urgency.”
October rate hike odds have flipped. Markets now see a 55% chance of a hold, versus 45% for another hike.
That’s a big change from just yesterday, when a rate hike was priced at 71% following hawkish comments from Warsh.
The shift came after NY Fed President John Williams said the Fed has time to wait and gather more information.
He pointed to several signs of easing:
“NO NEED FOR URGENCY.”
“We have time to gather more information.”
At 3.7%, inflation is still “TOO HIGH,” but inflation expectations remain well anchored.
Housing-related inflation has also slowed, while Williams said there is no evidence the labor market is adding to inflationary pressure.
He also said the Fed has not seen recent price shocks turn into broader, more persistent inflation.
Still, Williams left the door open for ONE MORE HIKE in December.
As a permanent FOMC voter and vice chair of the rate-setting committee, his comments are closely watched by markets.
$MOVR
$QNT
$MOVE
October rate hike odds have flipped. Markets now see a 55% chance of a hold, versus 45% for another hike.
That’s a big change from just yesterday, when a rate hike was priced at 71% following hawkish comments from Warsh.
The shift came after NY Fed President John Williams said the Fed has time to wait and gather more information.
He pointed to several signs of easing:
“NO NEED FOR URGENCY.”
“We have time to gather more information.”
At 3.7%, inflation is still “TOO HIGH,” but inflation expectations remain well anchored.
Housing-related inflation has also slowed, while Williams said there is no evidence the labor market is adding to inflationary pressure.
He also said the Fed has not seen recent price shocks turn into broader, more persistent inflation.
Still, Williams left the door open for ONE MORE HIKE in December.
As a permanent FOMC voter and vice chair of the rate-setting committee, his comments are closely watched by markets.
$MOVR
$QNT
$MOVE
