Waller Says Inflation Report Will Decide Fed's Rate Hike Plan

Federal Reserve Governor Christopher Waller stated that the upcoming inflation report will largely determine his stance on an interest rate hike later this month. The August inflation figures are set to be released on September 11, and if they show continued cooling, Waller would likely keep the benchmark interest rate unchanged.

However, if the inflation numbers come in 'hot', he would consider a rate hike. He noted that borrowing costs are only slightly restricting consumer and business demand, and it may not take much acceleration in inflation to prompt him to support a rate increase.

This is a significant development as several members of the Fed's rate-setting committee have expressed concerns about high prices, suggesting that a rate hike may be necessary. On the other hand, some policymakers believe inflation is slowly cooling and higher borrowing costs aren't needed.