- New York Fed President John Williams called another rate hike by year-end reasonable, citing investor sentiment and data dependence.
- CME Group's FedWatch tool put the probability of an October hike at 77.5%, up from around 53% on Wednesday.
- The Fed raised its benchmark rate by a quarter point earlier in September to a target range of 3.75%-4%.
- Boston Fed President Susan Collins warned inflation will stay notably above the Fed's 2% target; Fed Governor Michael Barr said further policy adjustments are likely needed.
- Recent data shows the US economy remains strong while inflation remains above 3%.
Quotes
“That seems to me a reasonable way of thinking about it.”
“it's likely that another rate hike may be appropriate by the end of the year.”
“further policy adjustments are likely to be needed to ensure inflation comes down to target in a timely fashion.”