Waller Hints at Interest Rate Decision Dependence on Inflation Report
US Federal Reserve Governor Christopher Waller has cast doubt on a potential interest rate hike later this month. According to Waller, an upcoming inflation report next week will largely determine whether he supports a rate hike or not.
The government is set to release August inflation figures on September 11. If the report shows that inflation continues to cool down, Waller said he would be inclined to keep the Fed's benchmark interest rate unchanged.
However, if inflation comes in high, he would consider a rate hike. Borrowing costs are only 'slightly restricting' consumer and business demand, and it may not take much acceleration in inflation to nudge him into supporting a rate hike.
Waller's comments have caused stock prices to rise and bond yields to fall.