Waller Rate-Hold Signal Eases Yields and Dollar, Bitcoin Reclaims $80K
Fed Governor Christopher Waller’s conditional hold stance cut September hike odds, with Treasury yields and the dollar easing while Bitcoin moved back above $80,000.
Federal Reserve Governor Christopher Waller stated in September 3 remarks that continued improvement in disinflation would incline him to support holding the federal funds rate steady.
Market-implied odds of a September rate increase fell to roughly 50 percent from 63.2 percent.
The 10-year Treasury yield declined about 3.6 basis points to 4.758 percent while the dollar index fell 0.72 percent to 98.88.
Bitcoin traded between a low near $76,950 and a high near $81,800 and reclaimed the $80,000 level.
U.S. spot Bitcoin ETFs recorded a net inflow of $101.15 million on September 2.
What remains unknown
The exact timing and wording of Waller’s full prepared remarks remain to be confirmed, as do any subsequent clarifications.
It is still unknown whether Friday’s jobs report or the following week’s inflation data will alter the conditional stance.
The scale of follow-through ETF flows and the persistence of the yield and dollar moves after the initial reaction are also unknown.