Fed Waller: December inflation data was very good

• Inflation data in December was very good
• looking at 12 month indicators it doesn't look like we have made much progress on inflation
• if numbers continue like this it is reasonable to think that rate cuts could come in H1
• 6 out of 8 months have been on target and it is reasonable to think that trend will continue
• if there are surprises like last year the Fed has to hold on, deflation will continue to be optimistic
• Inflation seems to be getting back into motion
• I don't think March can be completely ruled out
• A record could be seen sooner than the market expected
• Three to four cuts could be possible this year if the data cooperates (the market is pricing in around 39 basis point cuts this year)
• The strong jobs report was part of earlier weaker readings
• When you look at all the indicators, the job market is strong, not booming
• Tariffs may not lead to higher inflation; he does not see them as a major inflationary effect.
• I think inflation is going to continue to come in on target
• I'm probably more optimistic than my colleagues at the Féed

Wallers's comments were more serious. Yield s have declined with the 10 year now trading at 4.659% which is up 0.6 basis points.. Today's high yield reached 4.694%.

The two year is trading at 4.266%. That's down from 4.316%.

Looking at the major US stock indexes:

• The S&P index is down -4.05 points or -0.07% at 5945.91. The index was down -15.47 points at low levels
• The NASDAQ index is down -22 points or -0.11% at 19488. At session levels, the index is down -74.99 points

The EURUSD has moved up to reconfirm its 200-hourly moving average at 1.0319. Getting – and staying above – the moving average would be 200 times more positive.