The Federal Reserve has been keeping a close eye on inflation rates in recent months, and it appears that their decision-making process may be influenced by the upcoming Consumer Price Index (CPI) data release. In an interview with Bloomberg, Governor Waller expressed his interest in seeing how the CPI print for August shapes up before making any decisions on monetary policy.

According to Waller, current policy is only slightly restricting demand, and if inflation numbers are hot, he may consider a rate hike. However, if the data suggests that the recent disinflation trend remains in place, he would be more inclined to support a hold. Waller noted that while the consumer sector is solid, the labor market is unsatisfactory, adding another layer of complexity to the Fed’s decision-making process.

The CPI data release on September 11 will provide valuable insights into the state of inflation in the US economy. If the number comes in hotter than expected, it could give the Fed the green light to raise interest rates again, potentially slowing down economic growth. On the other hand, if the number is weaker than expected, it could lead the Fed to hold off on any rate hikes and allow the economy to continue growing at a moderate pace.

The Fed has been steadily raising interest rates over the past few years as part of its effort to keep inflation in check and maintain a strong economy. However, with the labor market still showing signs of weakness and global economic uncertainty on the rise, the Fed may be taking a cautious approach to monetary policy in the coming months.