Fed Governor Christopher Waller urges rate hold as inflation progress continues at current 3.50%-3.75% level
Federal Reserve Governor Christopher Waller argues that the central bank should keep interest rates steady at their current 3.50%-3.75% range if August data confirms cooling inflation, though he maintains readiness to hike immediately if prices remain elevated.
At a Washington meeting on Thursday, Federal Reserve Governor Christopher Waller told investors that policymakers should give disinflation more time to work before raising rates again. He stated his support for maintaining the Fed's current policy rate of 3.50%-3.75% at the upcoming September 15-16 session if incoming data indicates price pressures are easing. Waller emphasized that his decision will be heavily influenced by August inflation figures. He argued the present stance restricts aggregate demand only slightly and cited rising yields driven by fears over U.S. fiscal deficits around 6% of GDP and competition for capital in artificial intelligence infrastructure. Waller noted the safety premium for Treasury debt has disappeared, which helps explain why yields are up. However, he cautioned that a rate hike could quickly return if inflation proves persistent rather than cooling. The current policy rate sits at 3.50%-3.75% and remains meaningfully above the Fed's 2% target.
