The market odds of a rate increase at the US Federal Reserve’s October meeting sank Wednesday after the central bank published minutes of its September meeting, though Fed watchers priced in a December hike.
While the Fed’s policymakers voted unanimously to raise interest rates last month, they were divided over the rationale for doing so.
Some sought to head off demand-driven inflation while others wanted to curb energy and AI-driven price shocks.
Last week’s cooler-than-expected jobs report, along with a rise in bond yields, bolstered the case for a pause: “The long end of the yield curve has already gone up, and that’s the end that matters to the economy,” a former Philadelphia Fed president told The Wall Street Journal.
