Feds Barr signals more rate hikes as October odds fall to 50%
Federal Reserve Governor Michael Barr has renewed his call for further interest-rate increases to bring inflation down to 2%, while market odds of an October hike have fallen to about 50% from roughly 70%. Federal Reserve Governor Michael Barr said at the Detroit Economic Club on Sep. 29 that his base case calls for further policy adjustments to return inflation to target in a timely manner. With growth strong and employment holding up, he argued that policymakers need to give more weight to the risk of persistent inflation. October Fed rate hike odds fall as Williams favors patience Alongside Barrs warning, New York Fed President John Williams offered a less urgent view of the next rate increase. In his Sep. 29 remarks, Williams said one further increase remained his base case for this year, but suggested the Fed could take time to assess incoming data. Barrons reported that CME FedWatch odds of a quarter-point October hike fell from 70.9% on Monday to 49.3% on Tuesday afternoon. The remaining policy meetings this year take place in October and December. In its account of the speech, Reuters reported that Williams saw no urgency for the next hike, even as he remained committed to bringing inflation down. His









