Waller Says Inflation Report Will Decide Fed's Next Move

Federal Reserve governor Christopher Waller said that the upcoming inflation report on September 11 will be crucial in determining whether he supports an interest rate hike later this month or not. If the inflation figures show a continued cooling trend, Waller would likely keep the benchmark interest rate unchanged. However, if the numbers indicate higher inflation, he would consider a rate increase to control it.

Waller's comments come as the Fed is preparing for its next meeting on September 15-16. The central bank has been closely watching inflation data, which has remained above the target level of 2% despite a recent slowdown. The government reported that inflation stayed at 3.7% on a yearly basis in August.

Several members of the Fed's rate-setting committee have expressed concerns about inflation levels and some have suggested that a rate hike may be necessary to control it. However, others have argued that higher borrowing costs could harm economic growth. The comments from Waller and other Fed officials have created uncertainty around the central bank's next move.