Fed’s Jefferson says officials may need more time before another rate hike

  • Philip Jefferson said Fed officials may need more time before another rate decision.
  • Polymarket odds cited a 77% probability of unchanged October rates.
  • Goldman Sachs moved its next Federal Reserve rate-hike forecast to December.

Federal Reserve Vice Chair Philip Jefferson said policymakers may need more time and additional economic data before deciding whether to raise interest rates again, reinforcing reduced expectations for a move at the Oct. 27-28 meeting. Polymarket odds cited in the latest report put the probability of unchanged October rates at 77%, with a 23% chance of an increase, down from about 70% a week earlier. Goldman Sachs moved its forecast for the next quarter-point increase to December, while Minneapolis Fed President Neel Kashkari said he remained open-minded about an October move but expected further tightening could be needed if resilient growth and persistent inflation continue. The Fed raised its target range by 25 basis points to 3.75%-4.00% in September. For Bitcoin investors, analysts identified Treasury yields, U.S. spot ETF flows and derivatives leverage as key channels through which another rate increase could affect demand and market volatility.

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