Fed Nears 4%-4.25% October Rate Hike as Markets Price 70% Odds
Updated
Updated · The New York Times · Sep 25
Fed Nears 4%-4.25% October Rate Hike as Markets Price 70% Odds
3 articles · Updated · The New York Times · Sep 25
Summary
Federal funds futures now imply about a 70% chance the Fed will raise rates by another quarter point at its Oct. 27-28 meeting, just a week after its last increase.
S&P Global’s September survey showed U.S. business activity at a five-year high, adding to robust retail sales and a stronger-than-expected jobs report that suggest the economy is still accelerating.
That run of data has sharpened pressure on policymakers to keep tightening, potentially lifting the target range to 4% to 4.25% despite expectations that last week’s move might buy time.
An October hike would come days before midterm elections, intensifying scrutiny after President Trump attacked the Fed and demanded lower borrowing costs even as officials insist policy is driven by economic conditions.