Fed's Williams Says There Is No Need for Urgency on Rates

New York Fed President John Williams says there is "no need for urgency" following the Fed's September policy action, helping shift market expectations toward an October hold.
October rate expectations have flipped from a 45% probability of a hike to a 55% probability of a hold, after markets had priced a 71% chance of a hike just one day earlier.
Williams said the Fed has time to gather more information, while acknowledging that inflation at 3.7% remains too high. He also pointed to decelerating housing-services prices and said there is no evidence the labor market is adding to inflationary pressures.
Williams said the Fed has not seen recent price shocks spill over into broader and more persistent inflation, while leaving open the possibility of another rate hike in December.