Fed's Waller (voter) to support holding policy rate steady at September FOMC meeting if August inflation data shows continued progress

Waller has form here as an official who lays out his reaction function explicitly and in advance, which tends to give his remarks more weight than generic commentary but less than the committee's centre of gravity, since it is the median voter rather than the tails that sets the outcome. The transmission runs through the front end: a low bar for a hike ('small adjustment', 'may not take much acceleration') prices tail risk into the next meeting's OIS, while the baseline of holding steady anchors the nearer tenors. The detail that he leans on three-month annualised core rather than headline or core PCE is the operative tell, because it defines which prints actually move his vote and therefore which releases carry outsized weight into the decision. Worth observing is whether other officials echo the same data-conditional framing, since convergence around a shared reaction function is what has historically repriced the path, and whether the flagged statistical revisions alter the 12-month measures that shape the public narrative. As reaction-function commentary rather than a decision, the signal is conditional and directional.