Waller Signals Steady Rates Ahead of September, Data-Dependent
Fed Governor Christopher Waller said he is leaning to hold the federal funds rate steady at the September meeting if upcoming inflation data stay on track, arguing disinflation is taking hold even though inflation remains above the 2% target; he warned a data surprise could justify tightening and noted tariffs and energy prices have had muted effects. Markets priced around a 55% chance of a hike, and Waller stressed policy is currently only modestly restrictive, with upcoming CPI/PPI data and BEA revisions to the PCE index likely to influence the decision.
