Fed Officials Take a Patient Approach to Interest Rates and Digital Dollar

Federal Reserve Governor Christopher Waller stated that the central bank can afford to wait and observe before making any definitive moves on interest rates, as it assesses the progress in its efforts to bring down inflation. Waller's remarks come amidst rising Treasury yields and positive economic reports on inflation. While he favors higher rates and tighter policy, Waller indicated a near-term halt in rate hikes, with a possibility of further tightening if the real economy continues to show strength and inflation stabilizes or reaccelerates. The Fed's decision will be influenced by data on labor market, retail spending, nonresidential investment, construction spending, and third-quarter GDP growth.