Fed's Christopher Waller Signals Potential Rate Hold at September Meeting
Federal Reserve Governor Christopher Waller indicated on Thursday that he would likely support maintaining the federal funds rate unchanged during the Fed’s upcoming September meeting, provided inflation data continues to show progress toward the central bank’s 2% target. He emphasized that August's inflation figures will be a key determinant in his decision and left open the possibility of supporting a rate hike if recent trends reverse. Waller noted that while headline and core annual PCE inflation remains above 3%, three-month core inflation has significantly declined, suggesting an encouraging downward trajectory. His stance contrasts with Fed Chairman Kevin Warsh’s more cautious approach expressed at Jackson Hole last week. Waller also shifted from his earlier July position where he suggested the FOMC might need to tighten policy if core inflation remained high.
Topics: Federal Reserve inflation interest rates