Waller: The Fed's March interest rate decision awaits February nonfarm data.

The "Fed Whisperer" Nick Timiraos wrote that Fed Governor Chris Waller is linking his supportive attitude towards a rate cut in March to the February non-farm payroll data set to be released on March 6. He said, "Given the current situation, I believe the probabilities of these two possible outcomes are close to 50-50." If this data confirms the warming trend shown in the January non-farm payroll report, then maintaining interest rates would be the right move. He stated, "I cannot rule out the possibility that labor market data has turned towards stabilization and improvement." However, he also listed several reasons to doubt the validity of the January report - concentration of job growth in certain areas, potential downward revisions in the data, and other related survey results falling short of expectations. If this turns out to be true, then the rationale for a rate cut in March still stands. He admitted, "There are many uncertainties in the January data, I need to wait for the February report to be released...before determining if the labor market is truly rebounding."