What’s priced in ahead of the FOMC Minutes

The comments today from Waller indicate that he still sees inflation falling to 2%. That’s not the kind of thing you hear before a central bank moves to neutral.

The FOMC Minutes should offer more clarity on when officials will truly consider cutting rates again. The January 29 meeting won’t be that date with the market pricing in virtually no chance of a move. For the March meeting, the market is at 42% while that rises to 61%. A cut in nearly fully priced in for June and the market is at 39.9 bps this year, up from 35 bps before Waller.

This article was written by Adam Button at www.forexlive.com.