Wall Street Sees Over 50% Chance of Another Fed Rate Hike in October

The Federal Reserve's recent decision to raise its benchmark interest-rate target by 25 basis points has led Wall Street to reassess the chances of another rate hike in October. According to Cointelegraph, markets are now pricing in over a 50% probability of another increase at the next meeting.

The shift in expectations comes after the Fed's September 16 decision, which brought the target range to 3.75%-4%. Reuters reported that traders were assigning a 53% chance to another Fed rate increase in October, based on CME FedWatch data. This represents a modest increase from the previous week, when the probability stood at 42.5%.

The Federal Reserve's next scheduled meeting is set for October 27-28. The central bank has not announced an October rate increase, and its policy decisions remain dependent on incoming economic information. Goldman Sachs has forecast another 25-basis-point increase in October, while several other major banks have expected the next increase to come later in the year.