BUZZ-COMMENT-When Fed's Waller talks, traders should listen

Credit: REUTERS/KEVIN LAMARQUE

Feb 22 (Reuters) - When Federal Reserve policymaker Christopher Waller talks, the markets listen. For the large part he has been the lead indicator for the direction of travel that the committee is heading. In turn, his speech – due at 0035GMT – will be notable for market participants.

Recall, Fed's Waller had been the first policymaker to flag possible rate cuts in the spring. He was also among the first to lean against the aggressive rate cuts priced in by the market in the lead up to the January meeting, stating that the Fed should move carefully and not rushed.

Therefore, considering the recent run of firmer than expected CPI and NFP figures, which has seen markets continue to chip away at rate cut bets. Now projecting the first rate cut to take place most likely in June. Waller's speech will be closely watched as to whether markets are on the right track in their current thinking of Fed policy.

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US fed watch https://tmsnrt.rs/3IafrRW

(Justin McQueen is a Reuters market analyst. The views expressed are his own. Editing by David Evans)

((justin.mcqueen@thomsonreuters.com))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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