Fed’s Waller shifts stance: more optimistic, favors steady rates

Waller's pivot from a hawkish bias to a preference for steady rates signals a notable internal shift within the Fed, potentially reducing the odds of near-term tightening. This matters for markets pricing policy paths, as a key official now prioritizes data confirmation over preemptive action. The critical variable is August inflation: whether it softens enough to cement this hold or forces a reversal. The open question is how much weight Waller's optimism carries among other committee members, especially if price pressures persist.