Fed's Williams sees no urgency for next rate hike
New York Fed President John Williams says policymakers likely need only one more rate hike this year to hit the 2 per cent inflation target. This stance aligns with Governor Philip Jefferson, who signaled an October pause due to rising bond yields. Market expectations for a hike have dropped following a September jobs report showing only 29,000 new positions and an unemployment rate of 4.2%. Kalshi traders now price a hold at the October 27-28 meeting at 77%.
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- ✓ New York Fed President John Williams stated policymakers probably only need one more rate hike this year to return inflation to the 2 per cent goal.
- ✓ Governor Philip Jefferson signaled an October rate pause.
- ✓ U.S. employers added 29,000 jobs in September.
- ✓ The unemployment rate rose to 4.2% in September.
What changed
September employment data showing 29,000 new jobs and 4.2% unemployment has lowered the probability of an October rate hike.
Live updates
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Fed officials signal no urgency for October rate hike
New York Fed President John Williams says policymakers likely need only one more rate hike this year to hit the 2 per cent inflation target. This stance aligns with Governor Philip Jefferson, who signaled an October pause due to rising bond yields. Market expectations for a hike have dropped following a September jobs report showing only 29,000 new positions and an unemployment rate of 4.2%. Kalshi traders now price a hold at the October 27-28 meeting at 77%.
Why it matters
The Federal Reserve is balancing the need to lower inflation against cooling labor market data. A pause in October would mark a shift from previous market expectations of back-to-back increases.
What is confirmed
- New York Fed President John Williams stated policymakers probably only need one more rate hike this year to return inflation to the 2 per cent goal.
- Governor Philip Jefferson signaled an October rate pause.
- U.S. employers added 29,000 jobs in September.
- The unemployment rate rose to 4.2% in September.
Still unconfirmed
- Fed officials are increasingly worried inflation will not return to target in a timely manner.
What to watch next
- The Federal Open Market Committee meeting on October 27-28
- Upcoming inflation data reports
confidence 90%Sources used for this update (3)
- biz.heraldcorp.com — Fed may skip October, but rate hike cycle isn't over — market focus shifts to the ceiling
- news.kalshi.com — Fed rate hike odds plummet after September jobs miss
- www.businesstimes.com.sg — US Fed’s Williams sees no urgency for next rate hike
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Fed's Williams Sees No Urgency for October Rate Hike
New York Federal Reserve President John Williams stated that policymakers probably only need to deliver one more rate hike this year to return inflation to the central bank's 2 per cent goal, pushing back against market expectations for a back-to-back rate increase in October. Williams noted there is no urgency for the next rate move. Federal Reserve Governor Philip Jefferson also signaled an October rate pause, citing rising bond yields and the need for more time to evaluate the economy.
Why it matters
Traders anticipated an aggressive tightening cycle with back-to-back actions, but recent commentary from top officials cools those expectations. Federal Reserve Chair Kevin Warsh has maintained a stance against previewing rate decisions. Meanwhile, other officials like Fed's Barr have stated that more rate hikes are likely needed to curb inflation.
What is confirmed
- New York Fed President John Williams stated that policymakers probably only need to deliver one more rate hike this year to return inflation to the central bank's 2 per cent goal.
- John Williams poured cold water on the notion of an interest rate hike in October, stating there is no urgency for the next rate increase.
- Federal Reserve Governor Philip Jefferson signaled the central bank is unlikely to raise rates again at its October meeting, citing rising bond yields and the need for more time to judge the economy.
- Fed's Barr stated that more rate hikes are likely to be needed to curb inflation.
Still unconfirmed
- J.P. Morgan expects one more Fed rate hike in December and no long tightening cycle.
What to watch next
- The upcoming Federal Reserve policy meeting and official decisions on interest rates.
- Further economic data releases regarding inflation and bond yields.
confidence 95%Sources used for this update (17)
- WSJ — Fed’s Williams Hints Next Rate Increase Can Wait
- MarketWatch — Traders expecting a back-to-back rate hike from the Fed in October may have gotten ahead of themselves
- Reuters — Fed's Barr says more rate hikes likely to be needed to curb inflation
- Bloomberg.com — Fed’s Williams Sees One More Interest Rate Hike in Late 2026
- Yahoo Finance — 'No need for urgency': New York Fed's Williams squashes notion of an October rate hike
- reuters.com — Fed's Williams sees no urgency for next rate hike
- www.channelnewsasia.com — Fed's Williams sees no urgency for next rate hike - CNA
- finance.yahoo.com — 'No need for urgency': New York Fed's Williams squashes notion of an October rate hike
- finance.yahoo.com — J.P. Morgan Explains Why Fed Will Stop Hiking Before 2027 After One More December Hike
- ground.news — Fed's Williams sees no urgency for next rate hike - Ground News
- finance.yahoo.com — Fed's Williams sees no urgency for next rate hike - Yahoo Finance
- news.ssbcrack.com — Two Top Fed Officials Pull Traders Back From an October Rate Increase
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