Waller Casts Doubt on October Rate Hike as Market Odds Sink to 20%
Updated
Updated · The New York Times · Oct 8
Waller Casts Doubt on October Rate Hike as Market Odds Sink to 20%
1 articles · Updated · The New York Times · Oct 8
Summary
Christopher Waller said the Fed still needs “additional hikes” to return inflation to its 2% target, but signaled they need not come at consecutive meetings.
That stance further dimmed expectations for a second straight rate increase at the Fed’s late-October meeting, reinforcing a broader shift among policymakers toward flexibility on timing.
20% market odds for an October hike compare with 70% just two weeks ago, after speeches from John Williams and Vice Chair Philip Jefferson pointed to patience following September’s unanimous increase.
Friday’s September jobs report, which showed slower monthly growth, added to the case for waiting even as officials say more tightening will likely be needed.