Fed Governor Waller signals willingness to hold rates at September meeting if August data confirm disinflation

On September 3, 2026, Fed Governor Christopher Waller said he would be “inclined to support holding the target for the federal funds rate at its current setting” if incoming August data continue to show disinflation, while keeping the option to hike again if inflation surprises to the upside. This guidance narrowed near-term hike odds and moved markets.

Waller’s data-dependent guidance increases the probability that the Fed will pause at the Sep 15–16 meeting if US inflation prints confirm cooling, which can lower US Treasury yields and ease global funding pressures. Conversely, a hot August print would raise US benchmark yields, increasing funding costs for African USD issuers and hedging costs for corporates with short external rollovers, especially in South Africa (ZAF).

US consumer and producer inflation reports for August due before the Sept 15–16 FOMC meeting.