Investors now see a less than 50% chance that the Federal Reserve raises interest rates at its next meeting in October.

Markets are pricing in 43% odds of a quarter-point increase, down from more than 70% earlier in the week. The pullback came after New York Fed President John Williams suggested the central bank could wait until December before raising interest rates again.

As a result, investors are increasingly wagering that the Fed will only raise rates once more this year instead of twice.