Federal Reserve Governor Christopher Waller said on Wednesday he is prepared to support keeping the benchmark policy rate unchanged at the central bank’s September meeting, provided inflation continues to cool. The stance leaves the target range at its current setting while officials assess incoming price data.
Waller expressed confidence in the direction of current inflation trends, arguing that the recent moderation gives policymakers room to pause rather than move immediately. His comments framed a hold as consistent with a data-dependent approach heading into the meeting.
The remarks appeared to contrast with statements from Chairman Kevin Warsh a week earlier, exposing a split in tone among senior officials over how quickly the Fed should respond to price and labor conditions. Warsh’s earlier comments struck a firmer line on the path ahead.
Waller has previously flagged the labor market as a decisive input for rate decisions, a theme he returned to when he tied an earlier pause to employment data. That framework keeps upcoming jobs and inflation figures at the center of the September calculus.
A hold would extend the recent stretch in which the Fed has weighed cooling inflation against signs of a softening labor market. Governors have publicly differed on the balance of risks, with some favoring patience and others pressing for a firmer stance until price gains ease further.
The divergence between Waller and Warsh sets up a closely watched September gathering, where the committee’s decision and its accompanying guidance will shape expectations for the remainder of the year. Traders have positioned around the prospect of a steady rate, with attention on how the vote and statement characterize the inflation trajectory.
For now, Waller’s message points to a pause as the likely outcome if the data cooperate, keeping the current target range intact ahead of the September meeting.