Traders Scale Back Fed Hike Expectations; September Move Priced at 60.4%
AI Market Summary
Comments from Fed Governor Waller suggesting improving inflation have tempered market expectations for additional tightening, with FedWatch showing a 60.4% probability of a September hike ahead of the Sep 26 FOMC. Shifting rate expectations can quickly reprice the US dollar and front-end yields, altering financial conditions and near-term cross-asset positioning, including equities and crypto risk appetite.
Impact level
● High
Affected assets
NCSIDXY2USD/USDT-0.51%
AI Insight · NCSIDXY2USD/USDTAI Insight
● Neutral
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BlockBeats reported on Sept. 3 that markets pared expectations for a Federal Reserve rate increase after Fed Governor Christopher Waller said inflation is showing signs of easing. CME FedWatch data now puts the probability of a rate hike at 60.4% for September. The next FOMC meeting is scheduled for Sept. 26.