Waller's Dovish Stance on Rates Sends Stocks Higher

Federal Reserve Governor Christopher Waller expressed his inclination to leave interest rates unchanged at the central bank's upcoming policy meeting, provided that inflation data continues to show progress towards the Fed's target of 2%.

The 12-month inflation rate decreased to 3.4% in July from a year ago, with core PCE (Personal Consumption Expenditures) price index rising 3.7% year-over-year in July and core PCE standing at 3.3%.

Waller emphasized that the three-month annualized core PCE rate fell to 3.05% through July, down from 4.76% in February, indicating a trajectory towards price stability.