Federal Reserve's Interest Rate Hikes Possible, Warns Waller

Federal Reserve Governor Christopher Waller suggested the central bank should delay interest rate hikes while it waits for more data on inflation. He highlighted the ongoing concern that inflation could remain above the Fed's 2% target, partly due to factors like rising energy prices and the impact of artificial intelligence. Waller noted that the Bureau of Labor Statistics is set to release the June consumer price index, with economists predicting a 0.2% decline in the month’s all-items reading and a drop from 4.2% in May to 3.8% annually. This is crucial for markets, as inflation data could influence future monetary policy decisions.