Waller Hints at Rate Hike Dependence on September Inflation Data

US Federal Reserve Governor Christopher Waller has indicated that an upcoming inflation report will play a significant role in determining whether he supports an interest rate hike later this month or not. The government is set to release August's inflation figures on September 11, and if the report shows continued cooling of prices, Waller would be willing to keep the Fed's benchmark interest rate unchanged.

However, if the inflation numbers come in high, Waller has stated that he would consider a rate hike. He believes that borrowing costs are currently only slightly restricting consumer and business demand, but added that even moderate acceleration of inflation could prompt him to support a rate increase.

This statement adds weight to the importance of next week's inflation data, as several members of the Fed's rate-setting committee have expressed concerns about high prices. Some committee members believe that higher borrowing costs are necessary to curb inflation, while others argue that price increases are slowly cooling and more stringent measures are not required.

Earlier this month, Fed Chair Kevin Warsh also hinted at a potential rate hike, stating that inflation has not shown sufficient improvement and the Fed may need to do more. This comment sparked an increase in Wall Street investors' bets on a rate hike for the September meeting.