Waller Sees August Inflation Data as Crucial for September Interest Rate Decision

Federal Reserve Governor Christopher Waller stated that August's inflation data will significantly influence his decision regarding interest rates at the September meeting. The Federal Open Market Committee (FOMC) is scheduled to convene on September 15 and 16.

Waller emphasized that if inflation continues to move towards the Fed's 2% goal, he would support maintaining the current policy rate. However, if inflation remains high, he might consider a rate hike.

The three-month core inflation rate stood at 3.05% through July, down from 4.76% in February. Waller attributed this decline to 'considerable improvement' and 'encouraging speed.' Nevertheless, he pointed out potential risks, including rising energy prices and growing pressure on technology goods due to artificial intelligence expansion.

Waller noted that the broader US economy remains relatively stable, with real GDP growth at 1.8% in the first half of 2026 and real private domestic final purchases increasing by 3%. The labor market has also been steady, with an unemployment rate of 4.1% in July.