September FOMC Hike, but Williams Pushes Back on October Urgency

The September 16 FOMC raised rates 25 basis points, while New York Fed President John Williams said there is no need for an immediate October hike. His expectation of another increase, persistent inflation near 3.5%, resilient demand and elevated long-term yields preserve the higher-for-longer risk; PCE, payrolls and Fed commentary remain the next catalysts.