Waller Says Inflation Report Will Decide Fate of Next Rate Hike

U.S. Federal Reserve Governor Christopher Waller stated that the upcoming inflation report will be crucial 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 they show a continued cooling of prices, Waller would consider keeping the Fed's benchmark interest rate unchanged.

However, if the inflation report shows high price increases, Waller may support a rate hike to curb inflation. He noted that borrowing costs are currently only 'slightly restricting' consumer and business demand, but added that it might not take much acceleration in inflation to nudge him into supporting a rate hike.

This development adds weight to the importance of the upcoming inflation data, as several members of the Fed's rate-setting committee have expressed concerns about high price increases. Meanwhile, others have suggested that inflation is slowly cooling and higher borrowing costs may not be necessary.