Fed’s Waller Says He’d Back Holding Rates if August Inflation Data Support It
Bitcoin climbed above $80,000 following comments from Federal Reserve Governor Christopher Waller. Waller indicated that cooling inflation may justify keeping interest rates unchanged during the September meeting. This development follows August payroll data that showed 162,000 new jobs, surpassing previous forecasts. Investors are currently monitoring core inflation, which has dropped from 4.76% to 3.05% over three months, as they await further Consumer Price Index data to determine the Federal Reserve's next move.
What changed
Bitcoin exceeded $80,000 and three-month core inflation fell to 3.05%.
Live updates
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Bitcoin Rises as Waller Links Rate Decision to Inflation Data
Bitcoin climbed above $80,000 following comments from Federal Reserve Governor Christopher Waller. Waller indicated that cooling inflation may justify keeping interest rates unchanged during the September meeting. This development follows August payroll data that showed 162,000 new jobs, surpassing previous forecasts. Investors are currently monitoring core inflation, which has dropped from 4.76% to 3.05% over three months, as they await further Consumer Price Index data to determine the Federal Reserve's next move.
Why it matters
The Federal Reserve's interest rate policy directly affects market volatility and the valuation of digital assets. Previous tension exists due to Donald Trump's threats to block trade with surplus-running countries unless rates are cut. These competing pressures create uncertainty for investors regarding the September 16 Fed test.
What is confirmed
- Federal Reserve Governor Christopher Waller said cooling inflation could justify leaving interest rates unchanged in September.
- August payroll data showed 162,000 new jobs.
Still unconfirmed
- Three-month core inflation slid from 4.76% to 3.05%.
- Bitcoin climbed back above $80,000.
What to watch next
- The Federal Reserve interest rate decision on September 16
- Release of new Consumer Price Index data
confidence 80%Sources used for this update (5)
- www.sun-sentinel.com — South Florida and Broward County Business
- finance.yahoo.com — Bitcoin Faces Sept. 16 Fed Test as Core Inflation Slides From 4.76% to 3.05%
- cryptonews.net — Ethereum Price Prediction: Can ETH Clear $2,560 After Thursday’s 5% Rally?
- www.readtangle.com — The August economic reports.
- www.gold-eagle.com — Current Price of Silver Today (Canada Dollar)
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Trump Threatens Trade Halts as August Job Growth Exceeds Forecasts
Donald Trump has threatened to block trade with countries running surpluses with the U.S. unless the Federal Reserve cuts interest rates. This pressure coincides with August payroll data showing 162,000 new jobs, a figure that far exceeded forecasts. Federal Reserve Governor Christopher Waller previously stated he would support holding rates steady in September if August inflation data justifies the move. Market volatility persists as investors await Consumer Price Index data and monitor a weaker U.S. dollar and softer yields.
Why it matters
The Federal Reserve is balancing unexpected job growth against inflation metrics to determine its September policy. Political pressure from the Trump administration adds a layer of complexity to the central bank's independence. The neutral rate may be rising as the safety premium for Treasuries disappears.
What is confirmed
- U.S. August payrolls rose 162,000.
- Donald Trump threatened to halt trade with countries running surpluses with the U.S.
Still unconfirmed
- Donald Trump may block trade with deficit countries unless the Federal Reserve slashes interest rates.
- A Bank of Japan official hinted at a larger rate hike.
What to watch next
- Release of August Consumer Price Index data
- Federal Reserve interest rate decision for September
confidence 90%Sources used for this update (6)
- www.europesays.com — Wall Street indecisive after gold price rollercoaster ride, Main Street clings to bullish majority as CPI takes center stage
- www.messenger-inquirer.com — The Latest: US tightens economic squeeze on Iran after a week of renewed strikes
- en.sedaily.com — Trump Threatens to Halt Trade With Surplus Nations Over Fed Rates
- www.aol.com — The Latest: Federal judge extends block on Trump’s order seeking to limit midterm mail-in voting
- www.tovima.com — Trump Threatens to Halt Trade Unless Fed Cuts Rates
- en.sedaily.com — U.S. Job Growth Surprises as BOJ Hints at Bigger Rate Hike
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Fed Governor Waller Open to Holding Rates Steady in September
Federal Reserve Governor Christopher Waller indicated he would support keeping interest rates unchanged at the September meeting if August inflation data justifies the move. While some Fed officials have opened the door to holding rates steady, other reports suggest a rate rise remains a possibility. Waller also noted that the safety premium for Treasuries has vanished, a factor he says is pushing the neutral rate higher. The central bank is currently awaiting upcoming inflation metrics to determine its next policy step.
Why it matters
The Federal Reserve adjusts interest rates to balance inflation control with economic growth. The neutral rate represents the level where policy neither stimulates nor restricts the economy. Determining whether to hold, raise, or cut rates in September depends on whether inflation is trending toward the Fed's target.
What is confirmed
- Fed Governor Waller indicated he would support holding rates steady at the September meeting if August inflation data supports it.
- Federal Reserve officials have indicated the possibility of holding interest rates steady this month.
Still unconfirmed
- A rate rise is currently in play as Fed officials await inflation data.
- Waller stated the safety premium for Treasuries is gone, which is pushing the neutral rate higher.
What to watch next
- Release of August inflation data
- The Federal Reserve's September interest rate decision
confidence 90%Sources used for this update (6)
- WSJ — Stock Market Today: Bonds Stabilize as Oil Slips; Yen Jumps — Live Updates
- The New York Times — Rate Rise in Play as Fed Officials Await Inflation Data
- CNBC — Fed Governor Waller indicates he will support holding rates steady at September meeting
- Reuters — Fed's Waller says safety premium for Treasuries is gone, pushing neutral rate higher
- WSJ — Fed’s Waller Says He’d Back Holding Rates if August Inflation Data Support It
- Barron's — Fed Officials Open the Door to Holding Interest Rates Steady This Month