Rates & Fed · September 3, 2026 · 1 min read

Fed's Waller Signals Openness to a September Hold, Ties It to CPI

Published September 3, 2026

A sitting Fed governor breaks from Chair Warsh's hawkish tone, saying he'd back holding rates steady if August inflation data cooperates.

**Waller ties his vote to CPI:** In a speech today, Fed Governor Christopher Waller said, "If this continues in the data due over the next two weeks, I would be inclined to support holding the target for the federal funds rate at its current setting" — but warned that if August inflation data shows the recent improvement "has been fleeting," a hike at the September 15–16 meeting "may be appropriate." He cited core PCE inflation at 3.3% annually and 3-month core inflation down to 3.05%, from 4.76% in February. **Yields ease, stocks rally on the remarks:** The comments — which contrast with Chair Warsh's more hawkish Jackson Hole framing — pulled the 10-year Treasury yield down to 4.75% (-5bps) from yesterday's 3-year-high spike, while the S&P 500 rose 1.01% to 7,744, the Dow gained 1.20% to 53,699, and the Nasdaq climbed 1.35% to 26,572; the dollar index slipped 0.6% to 99.00.

Follow the data

Relevant directory links appear to be unassigned.

Sources

Related News

U.S. Consumer Price Index Increases 0.4% in August 2026 as Energy Costs Accelerate

The U.S. Bureau of Labor Statistics reported that the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent on a seasonally adjusted basis in August 2026, up from 0.1 percent in July. Over the last 12 months, the all-items index grew 3.4 percent before seasonal adjustment, remaining unchanged from the annual pace recorded in July. Gasoline prices accounted for more than one-third of the monthly gain, rising 3.9 percent. Meanwhile, core CPI, which excludes food and energy, rose 0.3 percent month-over-month and 2.4 percent on a 12-month basis.

U.S. Consumer Price Index Rises 0.4% in August as Gasoline Prices Accelerate Inflation

The U.S. Bureau of Labor Statistics reported that the Consumer Price Index for All Urban Consumers increased by 0.4 percent on a seasonally adjusted basis in August 2026, accelerating from a 0.1 percent gain in July. On an unadjusted basis, the headline all-items index rose 3.4 percent over the 12 months ending August, matching the annual pace recorded in the prior month. The monthly increase was primarily driven by energy costs, as gasoline prices jumped 3.9 percent and accounted for over one-third of the headline monthly increase. Meanwhile, core CPI—which excludes food and energy components—rose 0.3 percent month-over-month and 2.4 percent year-over-year, reflecting modest upward pressure in shelter and transportation services.

U.S. Consumer Price Index Rose 0.4 Percent in August 2026 as Energy Costs Rebounded

The U.S. Consumer Price Index for All Urban Consumers increased 0.4 percent month-over-month in August 2026 on a seasonally adjusted basis, driven significantly by a 3.9 percent surge in gasoline prices, according to data released by the Bureau of Labor Statistics. Over the 12 months ending August 2026, total CPI rose 3.4 percent unadjusted, matching the annual pace recorded in July. Core CPI, which excludes food and energy, increased 0.3 percent for the month and 2.4 percent year-over-year.