October Rate Hike Probability Drops to 50%, Fed's "Third in Command": One More Hike Needed This Year, But No Rush to Act

New York Fed President John Williams stated that if the economy evolves broadly in line with his expectations, another rate hike later this year would be appropriate, but the September increase bought more time for observation, and "there is no need to rush." Following Williams' remarks, market expectations for a Fed rate hike in October fell from around 70% to approximately 50%.