Treasury Yields Slide as Fedspeak Fuels Pivot Bets: Markets Wrap
- Fed’s Waller, Bowman open door to another pause in December
- US consumer confidence rises for first time in four months
This article is for subscribers only.
Treasuries extended their November rally, the dollar fell and stocks edged higher on speculation the Federal Reserve is done with interest-rate hikes and will be able to ease policy next year.
Fed swaps are now anticipating over 100 basis points of rate cuts by the end of 2024. In a speech entitled “Something Appears to Be Giving,” Governor Christopher Waller — one of the most-hawkish officials — said he’s “increasingly confident that policy is currently well positioned to slow the economy and get inflation back to 2%.” While acknowledging the many uncertainties, his colleague Michelle Bowman refrained from telegraphing an imminent hike.