Waller Supports Keeping Rates Unchanged, Amid Internal Division Over Future Hikes
The Federal Reserve's Governor Christopher Waller has expressed his support for keeping interest rates unchanged at the next monetary policy meeting, scheduled for September 15 and 16. This decision would be contingent on inflation figures remaining below a significant spike in August.
In a statement to Reuters, Waller emphasized that recent data suggests a trend of disinflation, with the Consumer Price Index (CPI) standing at 3.4% year-on-year in July, down from 3.5% in June. However, he cautioned that there is uncertainty regarding the impact of military conflicts, trade policy, and artificial intelligence on prices.
Waller added that if the August data shows a fleeting improvement, it might be appropriate to raise the monetary policy rate at the next meeting. This sentiment is not universally shared within the Federal Open Market Committee (FOMC), as Governor Michael Barr leans towards a rate hike at the next meeting, deepening internal division.
The chairman of the Federal Reserve, Kevin Warsh, also hinted at the possibility of another increase in interest rates, stating that the central bank still has 'work to do' while inflation remains high and controlling prices remains the priority.