Wall Street rallies and ends sharply higher after U.S. Federal Reserve Governor Christopher Waller says he would support holding the Fed funds target rate steady if incoming data shows inflationary pressures are easing. Investors scale back expectations for additional rate hikes, helping lift major U.S. stock indexes.
In the minutes before the move, rate-hike probabilities shift following Waller’s comments to Reuters. One outlet reports that the likelihood of a 50 basis-point rate increase at the September meeting falls to about 50.4% from 63.2% the previous day, citing CME’s FedWatch tool. Treasury yields also decline, with the benchmark yield pulling back for a second straight session after reaching its highest level since November 2023. Another report highlights that the selloff concerns tied to rate hikes cool as markets digest Waller’s stance, while emphasizing the broader advance in U.S. equities.
Both accounts attribute the market reaction to Waller’s conditional approach—holding steady if inflation cools, but supporting hikes if it does not—without describing policy changes beyond his remarks.
