Waller: August Inflation Data Will Decide September Rate Hike Fate

Federal Reserve Governor Christopher Waller indicated that August's inflation data will significantly influence his decision on whether to support keeping interest rates unchanged or increasing them at the September meeting of the Federal Open Market Committee (FOMC).

Waller stated that recent data has shown some signs of easing inflation, but added that the upcoming data would be crucial in determining the next policy move. He emphasized that his decision will be heavily influenced by what is learned about August's inflation.

The FOMC is scheduled to meet on September 15 and 16. Waller said that if inflation continues to trend towards the Fed's 2 per cent goal, he would support keeping the policy rate at its current level. However, if inflation comes in higher than expected, he would consider a rate hike.

The three-month core inflation rate stood at 3.05 per cent through July, down from 4.76 per cent in February. Waller saw this decline as a 'considerable improvement' and was encouraged by the speed of the decrease.