There is a possibility that the Federal Reserve Board (FRB) will temporarily pause the interest rate hike in September.

Policy makers at the Federal Reserve Board (FRB) are increasingly likely to keep interest rates unchanged at the next meeting in September, based on new data indicating a cooling inflation trend.

According to data released by the Bureau of Labor Statistics on August 10th, the core Consumer Price Index (CPI), excluding volatile food and energy costs, rose by 0.2% for the second consecutive month. This 2-month increase was the smallest in the past 2 years. The overall CPI also rose by 0.2% in July, with a 3.2% increase year-over-year.

Steven Stanley, Chief Economist at Santander US Capital Markets LLC, said, "The FRB must have been emboldened by two consecutive low numbers. I think the Fed's intention is to skip in September. It is certain that these are not the final words."

In July, the FRB raised the Federal Fund interest rate to a range of 5.25% to 5.5%, the highest level in 22 years. The median of the latest quarterly forecasts by FRB officials released in June indicated two more rate hikes this year, with the first one achieved in the previous month's hike.

President Michel Bowman reiterated on August 7th the view that further rate hikes may be necessary for the Federal Reserve to fully restore price stability. However, President Patrick Harker of the Federal Reserve Bank of Philadelphia stated on August 8th that the Federal Reserve may continue to evolve stably in the future.