Markets Tilt Expectations of Unchanged Policy Rates at Sept Fed Meet -- Market Talk

0613 GMT - Markets have scaled back expectations of a Federal Reserve rate hike in September following two Fed policymakers' comments hinting their preference for unchanged rates for now. On Thursday, Fed Gov. Christopher Waller said during a virtual event hosted by Reuters that he would support holding interest rates steady if August inflation data backs it up. Waller's remarks came a day after New York Fed President John Williams indicated that data so far isn't enough to warrant an increase in borrowing costs, prompting a reversal in yield rises. Money markets currently price unchanged rates with a 52% probability and assign a 48% probability of a hike on Sept. 16, according to LSEG, down from nearly 70% on Wednesday. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

September 04, 2026 02:13 ET (06:13 GMT)