Fed Rate Hike Odds Plummet as Williams Cools Down Market Expectations

New York Fed President John Williams said there is no need to rush another interest rate increase, causing the odds of a 25-basis-point hike in October to drop from over 70% to around 44%. Williams stated that the Fed's recent policy action gives policymakers time to gather more information before making another move. He emphasized that 'with the policy action we took at our September meeting, there is no need for urgency, and we have time to gather more information.'

The shift in odds comes after strong economic data, including high demand for artificial intelligence and rising oil prices, according to Federal Reserve Governor Michael Barr. However, Williams expects another hike later this year if the economy follows his forecast and inflation reaches 3.5% by the end of 2026.

This Fed signal could be good news for crypto markets if rate hikes slow down. The global crypto market cap stands at $2.95 trillion, with Bitcoin accounting for $1.67 trillion and a market dominance of 56.62%. Meanwhile, around 13,800 BTC left Binance, marking its largest single-day net outflow since 2023.