Federal Reserve Governor Christopher Waller said during a Reuters NEXT interview on September 3 that he would support keeping the federal funds rate unchanged if inflation data continues to show disinflation. US stock futures climbed modestly and bond yields stabilized after weeks of pressure. The CME FedWatch tool registered a roughly 12-percentage-point drop in the probability of a rate hike, now at 54.6%. Headline inflation stood at 3.7% in July with core inflation at 3.3%, but the three-month annualized rate fell from 4.76% in February to 3.05%, a deceleration Waller called encouraging. A 54.6% hike probability still means the market sees a slightly better-than-even chance rates will move higher.
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