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Traders pare bets on March rate cut after Waller speech

Published 01/16/2024, 11:24 AM
Updated 01/16/2024, 11:49 AM
© Reuters. FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., January 9, 2024.  REUTERS/Brendan McDermid/File Photo

© Reuters. FILE PHOTO: Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., January 9, 2024.  REUTERS/Brendan McDermid/File Photo

(Reuters) - Traders of futures that settle to the Federal Reserve's policy rate pared expectations for the U.S. central bank to start lowering short-term borrowing costs in March after Fed Governor Christopher Waller said he is more confident that inflation is on track to the Fed's 2% goal but that there should not be a rush to rates. 

Traders are now pricing in about a 60% chance of a March start to rate cuts, down from about 73% seen before Waller spoke. 

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