Waller: Inflation Report to Decide Fate of Rate Hike

Christopher Waller, a member of the Federal Reserve's governing board, stated that the upcoming inflation report on September 11 will be crucial in determining whether he supports an interest rate hike later this month. If the August inflation figures show continued cooling, Waller would likely keep the benchmark interest rate unchanged. However, if inflation comes in 'hot', he would consider a rate hike. He emphasized that borrowing costs are only 'slightly restricting' consumer and business demand.

Waller's remarks suggest that a rate hike later this month is not a certainty. His comments follow those of Federal Reserve Chair Kevin Warsh, who stated last week at the Fed's annual economic symposium in Jackson Hole, Wyoming, that inflation hasn't shown sufficient improvement and might require further action.

Wall Street investors had increased their bets on a rate hike this month after Warsh's speech. However, Waller expressed encouragement by signs of slowing inflation over the past two months, with prices ticking down 0.1% from May to June and rising just 0.2% from June to July.