US Fed Governor Waller floats September rate hold

US Federal Reserve Governor Christopher Waller has suggested that the central bank could hold interest rates steady in September if inflation continues to cool, according to Semafor. Waller cited "slow but continued progress" toward the Fed's 2% inflation target, expressing optimism about disinflation. This shift in sentiment has led to a decrease in market odds of a September rate hike to 50%, following a hawkish speech by Fed Chair Kevin Warsh earlier in the week.

Both Waller and New York Fed President John Williams noted that the temporary inflationary effects of tariffs and war-related energy spikes are fading, but expressed uncertainty about whether current policy will bring inflation down to the Fed's target.

Brief written by urgent.news from Semafor's own syndicated text. Machine-written — may contain errors; check the original before relying on it.