Fed governor Waller muddies outlook on possible rate hike later this month.

Federal Reserve Governor Christopher Waller indicated on Thursday, September 3, 2026, that the upcoming August inflation report, due next week, will be a key determinant in his stance on a potential interest rate hike later this month. Waller stated he would be inclined to keep the benchmark interest rate unchanged if inflation continues to cool, but would consider a rate hike if inflation "comes in hot." Following his comments, the market odds for a September rate hike reportedly fell to roughly 50-50, down from nearly 65% earlier in the week.