In remarks at a Reuters interview, Federal Reserve Board Governor Christopher Waller said he would support keeping the federal funds rate unchanged at the Federal Open Market Committee’s Sept. 15-16 meeting if August data confirm continued progress toward the 2% inflation goal. If inflation runs hot and indicates that progress has reversed, he would consider a rate increase because he views current policy as only slightly restrictive. Three-month core personal consumption expenditures inflation fell from 4.76% in February to 3.05% through July, although 12-month headline and core inflation remained at 3.7% and 3.3%, respectively. Waller expects real gross domestic product growth of slightly more than 2% in 2026 and views the labor market as stable, leaving August inflation as the main influence on his decision. He also distinguished such data-dependent policy signals from forward guidance, which he considers inappropriate under current conditions.
2026-09-03Federal Reserve Board
US Federal Reserve Board Governor Waller favors a September hold if disinflation continues, flags possible hike if inflation accelerates
Federal Reserve Board Governor Christopher Waller would support holding rates steady in September if August data confirm further disinflation. He would consider a rate increase if inflation accelerates, given his view that policy is only slightly restrictive. Three-month core inflation declined to 3.05% through July.