The market flirted with pricing in an October rate hike for weeks but with little guidance from Chairman Kevin Warsh, the market ultimately tilted towards pricing in no move, with just a 7% chance at the time of the decision.
Ahead of the decision, here is how markets looked: S&P 500 up 14 points US 2-year yields up 2.7 bps to 4.75% WTI crude oil up $2.94 to $102.82 USD/JPY up 30 pips to 158.23 Notable was back in the July decision when it was a 9-3 vote to hold rates with Hammack, Kashkari and Logan all voting to hike
The September rate hike was the first one of the cycle and the market is pricing in about 79 bps of hikes in the year ahead. am Button