Fed September Meeting Minutes: Most Officials Support Another Rate Hike This Year, but October Rate Hike Expectations Cool

Odaily: The minutes of the Federal Reserve's September meeting show that all 19 officials supported a 25 basis point rate hike, and most believed that further policy tightening was still necessary before the end of the year. However, based on policy statements after the meeting concluded, the Fed was not in a hurry to act again in October.

Influenced by Fed officials' recent cautious remarks, the market-implied probability of a 25 basis point rate hike in October has dropped from about 70% previously to 20%. In addition, the meeting minutes show that some officials believed rising long-term U.S. Treasury yields had already imposed certain constraints on the economy, and a few officials suggested improving policy tools in advance to address potential pressure in the Treasury market, but there is currently no clear intervention plan. (Jinshi)