Additionally, financial warning lights flash in France. Who among us hasn’t had an awkward day at their new job? Spare a thought, then, for Fed Chairman Kevin Warsh. He annoyed the man who hired him, President Trump, by voting along with colleagues to hike rates in September.
Traders were betting they’d do it again this month, but now mostly aren’t. What changed? An obvious reason is that someone nearly as influential as Warsh just told us so. John Williams, vice chair of the Federal Reserve’s rate-setting committee, said Tuesday he sees “no need for urgency.” October rate-hike odds fell to just 38%, according to CME’s Fed Watch tool, barely half what they’d been a week earlier.
His remarks came as a surprise because the two data releases most likely to influence the Fed’s decision were still pending—Wednesday’s PCE inflation number and Friday’s jobs report. PCE was basically in line. Economists think nonfarm payrolls grew by about 80,000 last month—no blowout, but enough to keep unemployment steady.
المصدر: Wall Street Journal Markets · لخّصه HeadlinesBriefing