Waller Weighs Rate Hike Decision on Upcoming Inflation Report

Christopher Waller, an outspoken member of the Federal Reserve's seven-person governing board, has stated that he will consider supporting an interest rate hike later this month if inflation comes in 'hot' next week. The government is set to release August inflation figures on September 11.

If the report shows continued cooling inflation, Waller would be willing to keep the Fed's benchmark interest rate unchanged. However, if inflation accelerates, he may support a rate hike to nudge borrowing costs higher and restrict consumer and business demand further.

This adds weight to the upcoming inflation data, which several members of the Fed's rate-setting committee have voiced concerns about. Some have suggested that price increases are still too high, warranting a rate hike, while others believe inflation is slowly cooling and higher borrowing costs are not needed.