Federal Reserve Holds Rates Steady If August Inflation Data Confirmed

Federal Reserve Governor Christopher Waller indicated support for holding interest rates steady at the September 15-16 meeting, contingent on continued disinflation evident in August inflation data. Following his remarks, the odds of a rate hike decreased 12 points to 55%. Currently, headline inflation stands at 3.7% and core inflation at 3.3%, both above the Fed's 2% target. The current concerns include high energy costs and sticky service inflation, which could influence market reactions. This information is pertinent for investors as it may affect rate-sensitive assets such as homebuilders and tech stocks based on inflation trends.