Fed Vice Chair Signals Patience on Rates as October Hike Odds Tumble

Federal Reserve Vice Chair Philip Jefferson signaled that policymakers may need more time to decide on raising interest rates, cooling market expectations for a hike at the central bank's late-October meeting.

In prepared remarks at the University of Virginia's Darden School of Business in Charlottesville, Jefferson emphasized the importance of careful review of incoming data and the evolving economic outlook when making policy adjustments.

The comments echoed those made by New York Fed President John Williams on Tuesday, who said there was no urgency to consider another increase following the central bank's September decision.

Fed funds futures now imply a 24% probability of a quarter-point hike at the October 27-28 meeting, down from about 35% before Jefferson spoke and from around 70% earlier in the week.