The Fed’s Waller talked about lowering interest rates

The interest rate market reacted on Thursday evening to a member of the board of the US central bank Christopher Wallerin to speeches. Waller hinted at a reduction in the key interest rate during the first half of the year. He did not rule out a rate cut at the March meeting.

“Yesterday’s inflation data was very good. If we receive similar data in the future, it is reasonable to think that the policy rate will be lowered during the first half of the year,” Waller said in an interview with CNBC.

“I’m optimistic that inflation will continue to decelerate and we’ll get closer to the 2 percent target a little faster than many people think,” Waller said.

The market has been waiting for the next interest rate cut in July. After Waller’s statements, bets on interest rate cuts in March or June increased and bond rates fell accordingly.

A moment ago, the US ten-year interest rate was down 4.9 percentage points at 4.602 percent. Before Waller’s speech, the interest rate was on the rise and peaked at 4.69 percent.