Fed’s Jefferson Says Central Bank ‘May Take More Time’ Before Hiking Rates Again
Jefferson said future policy changes should depend on incoming data as traders priced a 77% chance of unchanged rates in October, according to Polymarket.
- Federal Reserve Vice Chair Philip Jefferson indicated on Thursday that officials may need more time before changing rates, citing no urgency for an October increase following September's quarter-point hike to the 3.75%-4.00% range.
- New York Fed President John Williams stated on Tuesday that policymakers require more data before acting, as rising bond yields have prompted investors to begin "reassessing" the economic outlook ahead of year-end decisions.
- Traders now assign a 77% probability to rates remaining unchanged at the October meeting, as market expectations for a hike have dropped to 23% from about 70% last week according to Polymarket figures.
- Goldman Sachs shifted its base case for the next rate increase to December following the September 30 inflation release, while Minneapolis Fed President Neel Kashkari remains undecided on an October move.
- Jefferson noted inflation will stay "elevated" in "the near term" before declining toward the 2% goal, maintaining that risks to his forecast remain tilted upward due to geopolitical developments and stronger-than-anticipated demand.
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Fed’s Jefferson signals patience as October rate hike odds fall to 23%
Federal Reserve Vice Chair Philip Jefferson has signaled that officials may need more time before changing rates again, as Polymarket odds cited in the latest report have fallen to 23% for an October hike from about 70% last week. The…
Fed’s Jefferson says central bank ‘may take more time’ before hiking rates again
Federal Reserve Vice Chair Philip Jefferson said Thursday the central bank will wait to evaluate incoming economic data before deciding whether to hike interest rates again. “As we look ahead, my view is that any future adjustments in policy should be determined by carefully examining trends in the data, the evolving outlook, and the balance…
Jefferson Says Fed May Need More Time to Decide on Next Move
Fed policymakers lean against October rate hike
Two of the Federal Reserve’s top policymakers this week staked out an unusually clear case for taking in more data before deciding about another interest-rate hike, driving investors to largely abandon bets on an interest rate increase at the central bank's next policy meeting, in late October.
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