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Heather Long reports that Federal Reserve Governor Chris Waller, considered a key swing voter on policy decisions, is currently inclined to maintain interest rates at their current level in September.
The final decision will depend on the August inflation data. Waller indicates that if the inflation data for August remains mild, a rate hike is unlikely, but if inflation surprises to the upside, a different outcome is possible.
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Waller's posture comes after recent shifts in long-term Treasury yields, with Heather Long noting that the 30-year U.S. bond yield recently returned to 5.25 percent, erasing much of Bessent's recent intervention (full story). Earlier, Long reported that Janet Yellen was also taking a wait-and-see approach on U.S. interest rates in light of largely favorable data (details here). Market participants continue to monitor how policymakers weigh incoming economic indicators.