Are rate hike expectations for the Federal Reserve high or low?
I’ve always believed the probability of a Fed rate hike in September is very low. I firmly believe that keeping interest rates unchanged is the right direction! So I’m bullish on $XAU, $BTC, and $BNB.

Federal Reserve Governor Waller said that his next decision on interest rates will be “to a large extent influenced by” the August inflation data to be released next week, adding that it may not require inflation to rebound sharply in order for him to support a rate hike at the upcoming policy meeting.

Waller said: “If inflation continues to make progress toward our 2% goal, I would be willing to support holding the policy rate at its current level. But if the inflation data is too hot, I would consider raising rates.” However, at the same time, he said that some optimistic signals have emerged as pricing pressures improve.

Waller said: “Even though inflation is still clearly above the Federal Open Market Committee’s (FOMC) 2% target, recent data indicate that we are finally seeing some signs of cooling inflation.” The Federal Reserve officials will meet again to discuss policy on September 15–16 in Washington. This year, the Fed has kept interest rates unchanged for five consecutive meetings. According to federal funds futures pricing, investors currently believe the probability of a rate hike this month is over 60%.

Waller also said that if inflation continues to make progress, he would be willing to support the Fed keeping rates unchanged at the September meeting. On the back of these remarks, the market scaled back its bets on a Fed rate hike; U.S. Treasury yields dropped sharply, and the U.S. dollar weakened.