Top Fed official signals central bank will keep rates on hold in October

Federal Reserve Vice Chair Philip Jefferson has indicated that the central bank may take more time before deciding on another interest rate hike. According to Jefferson, any future policy adjustments will be determined by carefully examining trends in the data, the evolving outlook, and the balance of risks.

The Fed raised its benchmark rate to 3.75%-4.00% at its September 15-16 meeting, with policymakers projecting one more increase before the end of 2026. Jefferson supported last month's interest-rate increase but sees no urgency for the US central bank to act again.

Jefferson expects inflation to remain "elevated" in the near term before declining toward the Fed's 2% goal. The Economic Times reports that New York Fed President John Williams also said policymakers had time to assess additional data, though he still expected another increase before year-end.

Brief written by urgent.news from The Hill, The Economic Times - Top News — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.