Waller Weighs In on Interest Rates Ahead of Fed Meeting

Federal Reserve Governor Christopher Waller expressed his views on interest rates and inflation in recent remarks. He stated that he is leaning towards keeping interest rates steady at the central bank's September meeting, provided there are no surprises from upcoming inflation data.

This seems to contrast with statements last week from Chairman Kevin Warsh, who questioned whether the application of Artificial Intelligence would cause a significant and sustained rise in productivity across the economy. Waller, however, expressed confidence in current inflation trends, saying that tariff impacts likely have been muted and higher energy prices haven't had a substantial impact on other parts of the economy.

Waller noted that inflation is 'meaningfully above' the Fed's 2% target but recent trends suggest disinflation. He stated that if this continues in the data due over the next two weeks, he would support holding the target for the federal funds rate at its current setting.