Fed Policymakers Cast Doubt on October Rate Hike

Two top Federal Reserve policymakers have signaled that the central bank may not raise interest rates in October, casting doubt on previous projections of a rate hike at its next policy meeting. Federal Reserve Bank of New York President John Williams and Vice Chair Philip Jefferson both emphasized the need for more data before making any decisions on monetary policy.

Williams said 'there is no need for urgency' to change the current setting of monetary policy, while 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.'

The comments from Williams and Jefferson have led investors to largely abandon bets on an interest rate increase at the central bank's next policy meeting. Market pricing now suggests only a 25% chance of a rate hike this month, down from around 70% earlier in the week.