Fed Rate-Hike Bets Ebb After Waller's Inflation Comments (US2Y:) (US2Y:) (US2Y:) (US2Y:) (US2Y:) (US2Y:)
The CME FedWatch tool showed a 50% chance of a September hike as traders bet the Federal Reserve may stay on hold.
- Treasury yields dropped on Thursday, reversing a global bond sell-off as the 10-year Treasury yield fell more than 2 basis points to 4.7680%.
- Expectations for a rate hike this month sank to 50% from 63% on Wednesday, according to the CME FedWatch, as Federal Reserve Governor Chris Waller said he'd be 'inclined to support' keeping rates unchanged later this month.
- New York Fed President John Williams called recent Inflation data 'encouraging,' while Gregory Daco, chief economist at EY, noted the labor market is in 'satisfactory shape,' pointing to a likely Fed hold at the September FOMC.
- The Dow advanced as much as 600 points and Nasdaq gained more than 1%, though Investors remain cautious regarding Inflation as Brent trades around $96 a barrel amid Middle East tensions.
- Investors now await Friday's nonfarm payrolls data and unemployment figures, forecast at 4.1%, while President Donald Trump stated the current flare-up in tensions with Iran would not last 'too long.
14 Articles
14 Articles
The sharpest tone of the Federal Reserve (Fed) director Christopher Waller's low interest rate led investors to dissolve some of the high interest bets in September. The fall in the Treasurys' short-term interest rates resulting from this movement supported the advance of American stock exchanges on Thursday, along with the normalization of oil prices, despite the tension environment in the Persian Gulf. The Dow Jones index closed at a high of 1…
Gold jumps 2% as Fed Governor Waller's comments temper rate hike bets
Gold prices jumped more than 2% as traders cut bets on a September US Fed rate hike after Governor Christopher Waller signalled support for keeping rates unchanged if inflation continues to cool. Lower Treasury yields and a weaker dollar further boosted bullion, while investors await US jobs and inflation data.
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