Federal Reserve governor Christopher Waller, known for advocating interest rate hikes to combat inflation, has now changed his tune. Waller recently stated that there is no need for immediate action and the Fed can proceed with caution. His comments align with those made by Fed Chair Jerome Powell at the bank's annual summit in Jackson Hole, Wyoming.
Waller emphasized that there is no imminent need to make any changes and emphasized the importance of waiting for more data before making any decisions. This more measured approach reflects a change in Waller's stance on interest rates.
The Federal Reserve's next meeting is scheduled for September 19-20, and it appears that traders in the derivative markets are already anticipating a pause in interest rate hikes. This sentiment is reflected in the slight increase in the 10-year Treasury yield, which reached 4.22% in early trading.
As the markets open after the long holiday weekend, it remains to be seen how stocks will respond to this shift in perspective from a key member of the Federal Reserve.
