Markets scale back September Fed hike bets after Waller signals pause if inflation cools

Fed commentary, notably Waller's openness to holding rates if upcoming inflation cools, pushed implied September hike odds down sharply. This eases near-term policy-tightening risk and supports risk appetite across equities and crypto, while reducing support for the US dollar and front-end yields. Markets will likely trade with heightened sensitivity to next week's inflation prints given the renewed data-dependence.