Business & Finance
Fed Governor Waller says upcoming inflation data will dictate vote on interest rates
Christopher Waller indicates cooling price growth could keep rates steady, while a hotter reading would prompt him to support an increase.
The short version
- Federal Reserve Governor Christopher Waller announced that the August inflation report scheduled for September 11 will determine his stance on interest rates.
- Waller stated he would support holding rates steady if inflation slows, but is open to a rate hike if inflation accelerates.
- Financial markets and central bank officials are closely tracking incoming data ahead of the Federal Reserve's policy meeting on September 15–16.
Key facts
- Federal Reserve Governor Christopher Waller stated that the August inflation report on September 11 will dictate whether he backs a rate hike or maintaining the current rate.[ABC News]
- Waller characterized existing borrowing costs as only slightly restricting consumer and commercial demand.[ABC News]
- Fed Chair Kevin Warsh signaled that inflation has not improved enough and suggested the central bank may need to do more work.[ABC News]
- The Federal Reserve's next policy-setting meeting is scheduled for September 15–16.[ABC News]
What remains uncertain
- Whether the August inflation report will show continued cooling or an acceleration in price increases remains unknown until its release on September 11.[ABC News]
- The Federal Reserve's ultimate policy decision remains uncertain as rate-setting committee members hold differing views on whether additional rate increases are necessary.[ABC News]