Claudia Sahm Urges October Fed Hike as Odds Fall to 17% From as High as 70%

Former Federal Reserve economist Claudia Sahm is urging a 25-basis-point October rate hike, arguing early action could curb the need for larger increases if inflation stays elevated or rises further. Market-implied odds of an October increase stood at 17% on Oct. 21, after reaching as high as 70% about three weeks earlier. Investors increasingly expect the Fed to hold rates steady, continuing a shift in October rate-hike bets . The personal consumption expenditures price index rose 3.4% in August from a year earlier. The Fed’s inflation target is 2%.

Source: TokenPost