Federal Reserve Governor Christopher Waller stated on Thursday that his upcoming decision on interest rates will be heavily influenced by August inflation data due next week. The report will largely determine whether he supports a rate hike at the Federal Reserve's policy meeting later this month, noting that it may not take much to nudge him toward that decision.
Waller expressed confidence in current inflation trends and sounded optimistic about the overall trajectory. However, he indicated that he would support higher rates if this progress does not continue, stating that he would consider a rate hike if inflation comes in hot.
The case for raising rates has been bolstered by a surprise jump in US hiring last month, although a hike is still not guaranteed. Waller's confidence in inflation trends appears to contrast with statements made last week by Chairman Kevin Warsh.