Waller Eyes Rate Hike Decision Based on August Inflation Data

US Federal Reserve Governor Christopher Waller stated that inflation data for August will significantly influence his decision on whether to support keeping interest rates unchanged or raising them at the central bank's upcoming meeting.

The September meeting of the Federal Open Market Committee (FOMC) is scheduled for September 15 and 16. According to Waller, recent data has shown some signs of easing inflation, but the upcoming August data will be crucial in determining the next policy move.

If inflation continues to trend towards the Fed's 2% goal, Waller would support keeping the current policy rate unchanged. However, if inflation comes in 'hot', he would consider a rate hike.

Although inflation remains above the target at 3.05%, recent data shows a steady decline from its peak of 4.76% in February. Waller noted that this downward movement is a 'considerable improvement' and that the speed of the decline is encouraging.