Analyst: Federal Reserve Chairman Waller is unlikely to challenge the consensus

According to Odaily, Mabrouk Chetouane, Head of Global Market Strategy at Natixis Investment Managers, stated in a report that Federal Reserve Chair Waller is unlikely to challenge the current consensus at his second Monetary Policy Committee meeting. Chetouane noted that Waller will not be tempted to raise rates by 25 basis points, even though at this stage it is almost impossible to bring inflation back to target levels by the end of the year.

Furthermore, Waller will not want to risk disrupting the slow but steady improvement in the labor market—which has continued for several weeks—by tightening monetary conditions. Most analysts expect the Federal Reserve to leave rates unchanged on Wednesday, but the money market reflects a 38% probability of a rate hike. (Golden Ten Data)