Paul Christopher, head of global investment strategy at Wells Fargo Investment
Institute, expects the Fed to hold rates steady, saying June's moderation in
inflation gives policymakers cover to extend the pause and wait for more data.
Luis Alvarado, co-head of global fixed income strategy, said Waller has made
clear restoring inflation to 2% remains the Fed's top priority and that
policymakers have near-zero tolerance for a rebound; Alvarado added Waller
appears to believe the Fed can deliver. He warned the main market impact will be
in communication—particularly forward guidance—so investors should expect
greater policy flexibility and larger market moves between meetings, with the
ability to act flexibly on incoming data remaining critical for Waller.
