Waller: Steady Rates If Inflation Data Shows Progress in August

Federal Reserve Governor Christopher Waller said Thursday that if August's Consumer Price Index (CPI) data shows inflation pressures are cooling off, he is inclined to support holding the policy rate steady at the September meeting.

This is in line with the Fed's data-dependent reaction function and a low tolerance for any renewed inflation acceleration. Waller acknowledged signs of disinflation and solid GDP and consumption growth but noted that a 'hot' print could trigger a rate hike.

The FXS Speechtracker score, which reflects the tone of the speech, was 6.1, slightly below the historical average of 6.3. The Fed Sentiment Index fell by 2.06 points to 125.38, indicating a modest pullback in perceived hawkishness.

The US Dollar (USD) Index stayed under bearish pressure and lost 0.6% on the day at 99.00.