Waller Signals Rate Hike Decision Hinges on Inflation Report

Federal Reserve Governor Christopher Waller indicated on Thursday that the upcoming inflation report will be crucial in determining whether he supports an interest rate hike later this month or not.

The August inflation figures, set to be released on September 11, will show if price increases are still too high. If they continue to cool down, Waller said he would consider keeping the Fed's benchmark interest rate unchanged.

However, if the inflation report shows a surge in prices, Waller would consider supporting a rate hike. He stated that borrowing costs are only 'slightly restricting' consumer and business demand, and it may not take much acceleration in inflation to nudge him into supporting a rate hike.

This adds weight to the upcoming inflation data as other members of the Fed's governing board have expressed concerns about price increases being too high. However, some others believe that inflation is slowly cooling down and higher borrowing costs are not needed.