Traders are back projecting cuts of 160 bps this year, up from expectations of 140 bps last week.
Chris Weston, head of research at Pepperstone, said the risk is that Waller could push back on market pricing for a March cut and show a lack of urgency to normalize policy.
"That said, should he even remotely validate market pricing, then we should see U.S. 2-year bond yields fall further.
Markets are pricing around 120 bps of rate cuts by the Bank of England in 2024, with the first one most likely in May.
Elsewhere, the Australian dollar fell 0.43% to $0.6632, while the New Zealand dollar fell 0.39% to $0.6176.
Persons:
Hamish Pepper, Christopher Waller, Waller, Chris Weston, Weston, Bank's Joachim Nagel
Organizations:
U.S, Federal, Bank of Japan, Fed, Traders, Asset Management, Treasury, Bank of England, New Zealand
Locations:
Tokyo, Japan, U.S