Fed Officials Back Rate Hike Pause in September, Resist Declaring Victory Against Inflation

Waller, Collins, and other Fed officials made their latest comments a few days before the official quiet period ahead of September's Fed meeting, during which policymakers will avoid discussing their economic and policy outlook.

Across the recent interviews and declarations, the Fed officials have indicated a "wait-and-see" approach regarding the future interest rate policy path. Officials have conversed about further interest rate hikes in more data-dependent terms, indicating a higher level of confidencethat the fight against inflation may be nearing its end, though noting that inflation remains fairly high.

This represents a change from the Federal Reserve's most recent projections and statements during the summer, when most officials believed that another hike was probable in 2023, with the last rate rise on July 26th.