Simon Ballard: If the Federal Reserve suspends interest rate hikes in October, it will send a signal of no predetermined tightening cycle

Simon Ballard, Chief Economist of First Abu Dhabi Bank, stated that the Federal Reserve unanimously supported a 25 basis point rate hike last week and should pause rate hikes next month. He believes that suspending interest rate hikes in October will send a message that the Federal Reserve does not intend to initiate a predetermined tightening cycle. According to LSEG data, the probability of a 25 basis point interest rate hike in October based on money market pricing is 71%. (Source: Jin Shi)