The odds of a 25 basis points (bps) rate hike in October were at 14%. The Federal Reserve raised its interest rates by 25 basis points to a target range of 3.75% to 4.00%, during its September 16 policy decision.
At press time, the no-change outcome had a reported volume of $13.15 million compared to $9.97 million for the 25bps increase.
Warsh was asked about the direction of U.S. monetary policy and the prospects for another interest-rate increase at the Federal Reserve’s upcoming October 28 meeting.
Warsh responded with a non-committal stance, which markets interpreted as leaving the door open to a pause, thereby prompting a sharp rise in the probability of no rate hike in October.
What’s next for Fed’s rate decision in 2026
At the time of writing, the odds of zero Fed rate cuts by the end of 2026 had climbed to 96.8%, signaling high conviction largely due to the recent sticky inflation.
What’s in it for cryptocurrencies?
Most of the cryptocurrencies remained trapped in a correction phase over the past seven days through October 16, driven by hotter-than-expected inflation data from the United States.
As a result, a possible no-rate change in the upcoming Federal Open Market Committee (FOMC) meeting, could rejuvenate bullish sentiment.
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