Waller's Comments Shift Market Expectations on Interest Rate Hike

Federal Reserve Governor Christopher Waller hinted that an interest rate hike later this month may not happen. He stated that the upcoming inflation report on September 11 will play a significant role in his decision.

The August inflation figures will determine whether he supports keeping the benchmark interest rate unchanged or raising it. If the inflation data shows a continued decline, Waller said he would be inclined to keep rates steady. However, if the numbers come in high, he would consider a rate hike.

This development has led to a change in market expectations, with the odds of a rate hike falling from nearly 65% to roughly 50-50 after Waller's comments.