Traders Cut October Fed Rate-Hike Bets After Williams Comment
Markets now price only one additional Federal Reserve rate increase through year-end. The probability of a 25-basis-point October hike stands at 68.1%.
Traders are scaling back expectations for a Federal Reserve rate hike in October after Williams said the central bank was not in a hurry to act, easing near-term expectations for tighter U.S. monetary policy.
Markets now price only one additional rate increase through the end of 2026. The probability of a 25-basis-point hike at the Fed's October meeting stands at 68.1%.
The move marks a shift in expectations for the next policy decision, with traders reassessing how quickly the central bank may raise borrowing costs. Williams' comment provided the immediate catalyst for the change in rate-hike bets.
The October meeting is the next key event for traders watching the Fed's policy path.
