Treasuries Stumble on Mere Mention of Fed Rate Hike by Williams

New York Fed president says a rate hike isn’t his base case
Market-implied odds of a rate increase remain close to nil

Federal Reserve Bank of New York President John Williams said, “I definitely don’t feel urgency to cut interest rates. I think monetary policy is doing exactly what we would like to see.” Williams said economic data will determine the timing of lower interest rates during the Semafor World Economy Summit in Washington.Source: Bloomberg

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By Sydney Maki and Carter Johnson

April 18, 2024 at 3:22 PM UTC

Updated on

April 18, 2024 at 5:27 PM UTC

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The US bond market’s recovery was cut short by a Federal Reserve official’s mere mention of the possibility of an interest-rate increase.

In response to a question during a conference in Washington, New York Fed President John Williams on Thursday said another rate hike isn’t his base case. But he also said that “if the data are telling us that we would need higher interest rates to achieve our goals, then we would obviously want to do that.”