Waller's Inflation Report Hinge May Delay Rate Hike Decision

Federal Reserve Governor Christopher Waller's comments on Thursday have cast doubt on whether the central bank will raise interest rates later this month. The upcoming inflation report, set to be released next week, will play a crucial role in determining Waller's stance.

The government will release August inflation figures on September 11. If the report shows that inflation continues to cool down, Waller would be inclined to keep the Fed's benchmark interest rate unchanged. However, if inflation comes in hot, he would consider a rate hike.

Borrowing costs are currently only slightly restricting consumer and business demand, according to Waller. He added that it may not take much acceleration in inflation to nudge him into supporting a rate hike.