Yellen: The market expects to complement the Fed's policy

U.S. Treasury Secretary Janet Yellen did not support traders' current expectations of a Fed rate cut, but said markets can sometimes complement the actions of policymakers. "The market is predicting the Fed's future moves based on the interpretation of the data that follows," Yellen told reporters on Wednesday local time during a meeting with government officials in Mexico City. "It's a healthy response that can serve as a useful complement to monetary policy if the market is thoughtful when reading the data. But she went on to say, "The Fed will take whatever action they see fit, and market conditions will have an impact on that." "Investors are now pricing in a more than 50% chance of a Fed rate cut in March and expect the benchmark rate to fall to around 4% by the end of 2024. The benchmark rate is currently in the range of 5.25% to 5.5%.