Economy · World

US Fed Official Waller's Comments Influence Rate Cut Expectations

Expectations for a US Federal Reserve interest rate cut in September have diminished, with traders now assigning less than a 50% probability, according to CME FedWatch data. Fed Governor Christopher Waller stated that upcoming August inflation data will be a key factor in deciding the stance on a September rate move. He indicated he would support holding rates steady at the September meeting, emphasizing a need to "give disinflation a chance." These comments have led to a fall in Treasury yields and a rise in the dollar, while US stocks experienced a retreat. Asian shares climbed ahead of US jobs data, and Indian shares also opened higher as traders adjusted their bets on Fed rate hikes.

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