Fed Governor Waller Calls for Patience as Inflation Eases
Federal Reserve Governor Christopher Waller expressed openness to keeping interest rates steady at the Fed's upcoming policy meeting if inflation continues to cool. Speaking in Washington, he emphasized that his decision will depend heavily on August inflation data and said a rate hike remains possible if prices rise unexpectedly. Waller noted that while inflation is still above the 2% target, it has shown slow but consistent progress toward that goal. He urged patience with disinflationary trends, paraphrasing John Lennon's 'Give peace a chance' to highlight his cautious stance on monetary policy adjustments at this stage. Market reactions were mixed after Waller’s comments, as traders reduced their expectations for an imminent rate hike from around 60% to about even odds. Bond yields fell slightly amid shifting views of future Fed action.
Topics: Federal Reserve inflation interest_rates