Williams Dials Back October Rate Hike Odds as Markets Cut Chances to 50%

2 articles · Updated · Yahoo Finance · Sep 29

John Williams said there is "no need for urgency" after September's rate increase, signaling the Fed is more likely to wait past its Oct. 27-28 meeting before tightening again.
One more hike is still on the table "late this year," he said, arguing additional data should clarify economic trends and the risks around the Fed's goals.
Market pricing shifted quickly: traders who had seen a 70% chance of an October hike on Monday cut those odds to about 50% on Tuesday.
Williams, the New York Fed chief and FOMC vice chair, kept to the committee's median outlook for one more increase this year while warning inflation will run about 3.5%, lifted by AI-driven demand and more persistent energy-price pressure.