John Williams, president of the Federal Reserve Bank of New York, said in a Bloomberg interview on Tuesday that a further rate hike remains appropriate this year. He sees no need to add one in 2027, however. Markets had been pricing in a further increase next year.
Disinflation and the labour market
Williams described disinflationary forces at work in the economy. He said the labour market is not feeding into prices, and that pressure from the AI and energy sectors has been limited. The September hike, in his view, was a matter of risk management.
US inflation data for September is due Wednesday at 14:30 Paris time. Consensus expects the annual headline rate at 3.7 percent, against 3.4 percent in August. Core inflation is expected at 2.4 percent.
Bitcoin rebounds from a weak session
Bitcoin rose back just below 84,000 dollars overnight, up 1.5 percent over 24 hours. It had traded at 83,200 dollars the previous day, after 771 million dollars of crypto liquidations and a 6 percent fall in the Seoul stock exchange.
US bitcoin ETFs recorded net inflows of 109.8 million dollars on Tuesday, led by Fidelity with 103.1 million. Over seven sessions since 5 October, however, the funds have shed a cumulative 634 million dollars.
Strive bought 3,311 bitcoin for 280 million dollars at an average price of about 84,500 dollars, bringing its holdings to 32,773 bitcoin. The firm is seeking to raise 500 million dollars through SATS preferred shares.
By our market data, bitcoin stood at $83,497 at 05:44 GMT on 14 October, down 0.06 percent from the previous close.
Related: Sucor sees 60% chance of Fed rate hike in September · Credit Agricole sees Polish rate hike to 4.00%
Source: Federal Reserve | Data: CoinGecko
