September 6, 2024 – 8:19 AM PDT

(Reuters) – Traders priced in a quarter-point Federal Reserve interest-rate cut this month, with a bigger move expected at its next meeting, after Fed Governor Christopher Waller said recent labor market data shows it is time to cut rates and said he could support a bigger rate cut if the data warrant it.

Traders see a 70% chance of a quarter-point move this month based on rate-futures prices, and are pricing in a Fed policy rate range of 4.5%-4.75% by the Fed’s November meeting. The policy rate has been in the 5.25%-5.50% range for more than a year.

^{Reporting by Ann Saphir}