Central Bank Guidance
Federal Reserve Official Signals Preference for September Hold Amid Modest Growth
03 Sep 2026
Federal Reserve Governor Christopher Waller indicated a preference for maintaining steady interest rates at the September meeting, provided inflation data does not yield surprises. This coincides with the latest Beige Book report, which characterized U.S. economic activity as rising modestly with persistent but moderate price pressures.
Why it matters
Waller’s comments have led to a significant repricing of market expectations, with the probability of a September rate hike dropping from over 60% to approximately 50%. This shift in the Fed's perceived reaction function is weighing on the USD as yield advantages narrow.