Waller: Upcoming Inflation Report to Decide Rate Hike Fate

Federal Reserve Governor Christopher Waller stated that an upcoming inflation report will determine whether he supports an interest rate hike later this month or not. The August inflation figures are set to be released on September 11, and if they show continued cooling, Waller would likely keep the Fed's benchmark interest rate unchanged.

However, if the inflation report shows a significant increase, Waller would consider raising the interest rate. He noted that borrowing costs are only 'slightly restricting' consumer and business demand, but added that a modest acceleration in inflation could nudge him into supporting a rate hike.

This sentiment was echoed by Fed Chair Kevin Warsh, who said last week at the annual economic symposium in Jackson Hole, Wyoming, that inflation had not shown sufficient improvement. Warsh suggested that the central bank might have 'more work to do,' implying that a rate increase could be necessary.