FINWIRES · TerminalLIVE
FINWIRES

Federal Reserve Watch for Sept. 3: Waller Supports September Hold, Says Would Consider Rate Hike if Inflation Progress Reverses

By

Fed Governor Christopher Waller (voter) said that his policy decisions would likely be based by inflation data and that he is willing to maintain the current rate level for another meeting if there is continued progress toward the 2% goal but would consider a rate hike if there is an acceleration in price growth.

Recent comments of note:

(Sept. 2) New York Fed John Williams (voter) said that he would consider a rate increase at the September FOMC meeting, saying that recent increases in yields are a sign of a strong economy.

(Sept. 1) Fed Governor Michael Barr (voter) said that the economy is growing and consumer spending remains solid, but inflation is still too high and if there no signs of it moderating, the FOMC should "act decisively to raise rates."

(Aug. 28) Fed Chair Kevin Warsh (voter) said in his Jackson Hole address that inflation is the more concerning part of the Fed's dual mandate, committed to the 2% inflation target and repeated his belief that forward guidance can handcuff the Fed from making decisions. Warsh said that it is the Fed's duty to deliver price stability, adding that it is not something that will happen on its own.

(Aug. 27) Cleveland Fed President Beth Hammack (voter) said in an interview with CNBX that the FOMC should act now to help move inflation back to target, adding that the pain for business and consumers will be greater if the FOMC waits.

(Aug. 25) Boston Fed President Susan Collins (nonvoter) said that she approved of the FOMC's decision to hold interest rates steady at its most recent meeting but said that monetary policy needs to "be nimble" and that continuing to hold rates steady will require proof that inflation is slowing, with rate hikes possible if that proof is lacking.

Related Articles

International

Australia Trade Balance Falls in July

Australia's goods balance recorded a seasonally adjusted surplus of AU$1.92 billion in July, up from AU$2.34 billion in June, according to data published by the Australian Bureau of Statistics on Thursday.Goods exports fell 3.3%, or AU$1.58 billion, to AU$46.26 billion, driven by a decrease in non-monetary gold.Goods imports fell 2.5%, or AU$1.16 billion, to AU$44.34 billion, driven by lower fuel and lubricants.

ASX 200
International

RatingDog China Services PMI Quickens in August

Business activity across China's private service sector expanded in August, with the headline RatingDog China General Services Business Activity Index, compiled by S&P Global, coming in at 51.4, according to data released on Thursday.The latest reading beat the consensus forecast of 50.6 tracked by Investing.com and compared with the 50.4 recorded in the previous month.The monthly momentum was primarily driven by new business, greater market demand, financial improvements, client recruitment, and innovation.

Shanghai Composite^SZSE
International

RatingDog China Composite PMI Quickens in August

Business activity across China's private sector expanded in August, with the headline RatingDog China Composite Output Index, compiled by S&P Global, coming in at 52.1, according to data released on Thursday.The latest print, which aggregates combined performance figures across both the manufacturing and service sectors, compared with 50.8 in the previous month. A reading above 50 indicates an overall expansion in private sector activity, while a figure below signals a contraction.The reading was in contrast with the official government composite PMI, which stood at 49.5.The monthly momentum reflected a faster pace of growth in output and new businesses in both manufacturing and services sectors in August, with the RatingDog China General Manufacturing PMI at 51.5 and the RatingDog China General Services Business Activity Index at 51.4.

Shanghai Composite^SZSE