Fed Signals Delayed Rate Hike Until December

US Federal Reserve policymakers have signaled that they may not raise interest rates in October as previously expected. New York Fed President John Williams and Vice-Chair Philip Jefferson both emphasized the need to carefully examine trends in data before making a decision.

Williams stated 'there is no need for urgency' on changing monetary policy, while Jefferson noted that markets are reassessing the outlook following recent bond market yield increases.

As a result, investors have largely abandoned bets on an interest rate increase at the central bank's next policy meeting in late October. The chance of a rate hike in October is now priced at only 25%, down from around 70% earlier in the week.