Fed Officials Delay Rate Hike Decision Amid Caution on Inflation

Federal Reserve Vice Chair Philip Jefferson has hinted that further interest rate hikes may be delayed. Speaking at the University of Virginia's Darden School of Business, Jefferson emphasized the need for careful consideration of economic data before making any policy decisions.

Jefferson noted that 'any future adjustments in policy should be determined by carefully examining trends in the data, the evolving outlook, and the balance of risks.'

This cautionary approach comes as several Federal Reserve officials have signaled potential rate hikes to combat inflation. Annual inflation, measured by the personal consumption expenditures (PCE) price index, was 3.4 percent in August.

However, traders are now pricing in a roughly 76 percent chance of the panel holding rates at their current range of 3.75 percent to 4 percent at the end of this month, down from about a 69 percent probability last week.