Fed Governor Chris Waller Indicates August Inflation Report Could Influence Rate Decision
Federal Reserve Governor Christopher Waller has indicated that the upcoming August inflation report on Sept. 11 could determine whether interest rates are raised at the Fed's next meeting in September. Speaking at a Reuters event, Waller said he would support holding current policy if there is continued progress toward the 2% inflation target but may consider a rate hike if data shows persistent high inflation. Inflation has remained above the Fed’s 2% goal for years and was recently exacerbated by rising oil prices due to geopolitical tensions. While core inflation showed some signs of cooling in July, the Personal Consumption Expenditures (PCE) price index came in hotter than expected. The FOMC left rates unchanged at its last meeting but with three dissenting votes favoring a hike. Waller’s stance could shift the balance within the 12-member voting committee if he supports an increase. Other Fed officials, including Michael Barr and potentially Chair Kevin Warsh, may also reconsider their positions depending on the inflation data.
Topics: Federal Reserve FOMC inflation interest rates