Federal Reserve Governor Christopher Waller said Friday a pause in rate hikes at the October 29–30 FOMC meeting is ‘very likely,’ citing recent softening in core PCE and labor market data.
He added that further tightening would require ‘clear evidence’ of reaccelerating inflation—a shift from his earlier hawkish stance. Markets responded by pricing in a 78% chance of no change, pushing S&P 500 futures up 0.4%.
The USD Index fell 0.3% to 101.12, its lowest level since September 12. Two-year Treasury yields dropped 8 basis points to 4.71%.
