Waller backs holding rates steady at September Fed meeting

Federal Reserve Governor Christopher Waller said he is leaning toward keeping interest rates unchanged at the central bank’s September meeting, assuming upcoming inflation data do not show a surprise. Waller said recent inflation trends suggest disinflation is still progressing, even though inflation remains above the Fed’s 2% target. He argued that tariff effects have been limited and that higher energy prices have not significantly spilled into the broader economy. His comments contrasted with a more hawkish tone from Chairman Kevin Warsh last week and helped push market expectations toward a lower chance of a rate increase at the Sept. 1516 meeting. The Fed will get two key inflation reports next week, which could still influence the final decision.