Waller says if August inflation exceeds expectations, he will consider supporting a rate hike

Federal Reserve Governor Waller stated that his next interest rate decision will "largely depend on" the August inflation data to be released next week. He said that just a certain degree of inflation uptick could prompt him to support an interest rate hike at the upcoming Fed policy meeting. He remarked, "If we continue making progress toward the 2% target, I am willing to support keeping the policy rate at its current level. But if the inflation data exceeds expectations, I will consider a rate increase." Waller described the current policy as slightly restraining economic growth and added, "An acceleration in inflation might not prompt me to support tightening policy. If there's evidence in August showing a reversal in the momentum toward the 2% inflation target, then a modest policy adjustment would help ensure inflation returns."