Fed Puts Brakes on October Rate Hike, Eyes December Trigger

Federal Reserve policymakers are leaning against raising interest rates in October to give them more time to assess economic data, including inflation figures. The decision comes after a cooler-than-expected job market report showed US employers added just 29,000 jobs last month, less than the 90,000 economists had expected.

Chicago Federal Reserve President Austan Goolsbee said there is still room for rate hikes and that the labor market is steady, but inflation remains a concern. He noted that wage growth slowed in September and that the increase in unemployment was driven by more people entering the workforce.

The Fed has signaled it will likely deliver at least one more interest rate hike by year's end if inflation persists. Traders now see a one-in-four chance of an October rate hike, but a high probability of a December increase based on CME FedWatch's analysis of interest-rate futures prices.