Waller: Next Rate Move Hinges on Inflation Data Release
US Federal Reserve Governor Christopher Waller stated that the central bank's next interest rate move will depend on upcoming inflation data. The government is set to release August inflation figures on September 11, which will be a crucial indicator for policymakers.
If the report shows that inflation continues to cool down, Waller would likely support keeping the Fed's benchmark interest rate unchanged. However, if the inflation numbers come in higher than expected, he may consider raising rates.
Waller emphasized that borrowing costs are currently only 'slightly restricting' consumer and business demand, suggesting that a rate hike might be necessary to prevent further acceleration of inflation.
The Fed's decision on interest rates has been met with increased uncertainty in recent weeks, with some policymakers advocating for a rate cut and others pushing for higher rates. Federal Reserve Chair Kevin Warsh stated last week that inflation had not shown sufficient improvement, implying that the central bank might need to take further action.