Fed Governor Christopher Waller stated that he would support a policy rate freeze if August inflation data continues its recent slowing trend. However, he added that he would also consider supporting a rate hike in September if the August inflation data shows strength. Governor Waller mentioned that even if inflation does not accelerate significantly, it could support a more restrictive policy stance, and that a "small adjustment" to the policy rate would help recover progress if the slowing trend in August inflation data reverses. He also noted that there is significant uncertainty about how inflation and the economic outlook will be affected by military conflicts, trade policies, artificial intelligence (AI), etc., and added that GDP growth remains robust and stock market gains could support increased consumption. He stated that strong energy prices and tariffs are not clear causes of persistent inflationary pressures, and said that labor market conditions are good and the August employment report is expected to continue this trend. He also noted that while there are certain upside risks to inflation, wage growth is in line with expectations and is returning to the 2% level.
