Waller: Cooling Inflation Doesn't Rule Out Rate Hike in September

Federal Reserve Governor Christopher Waller stated that while U.S. inflation remains above target, recent data shows signs of cooling.

If August inflation continues to improve, he would lean toward keeping interest rates unchanged, but if it reverses, a modest rate hike may be necessary.

Waller noted that economic fundamentals remain resilient, with real GDP growing at an annualized rate of 1.8% in the first half of 2026 and private domestic final purchases expanding by 3%.

The official rejected the view that AI investment artificially inflates GDP, arguing that AI will become deeply integrated into the future economy like the internet.