Monetary Easing Hopes Fade
The dollar is holding near a one-month high and risk appetites are deteriorating as investors ratchet monetary easing expectations down in the face of a concerted jawboning campaign from central bankers. Odds on a rate cut at the Federal Reserve’s March meeting are down to less than 60 percent after Governor Christopher Waller warned policymakers would be “methodical and careful” in lowering borrowing costs. In a speech given yesterday morning, Waller disappointed investors expecting a repeat of previous rate-cutting cycles by saying “With economic activity and labor markets in good shape and inflation coming down gradually to 2 percent, I...