Federal Reserve Governor Waller said that GDP growth is still at a “steady” level, and rising stock prices should support consumption growth. Waller said the labor market is doing well, and the August employment report is expected to continue this trend. Waller believes there is some upward risk in inflation, but wage growth is in line with expectations and is returning to 2%. Waller said that the three-month core inflation showed a “significant improvement” and that the pace was “encouraging.” Regarding PCE, Waller said that overall PCE and core PCE are not the best indicators for judging the direction of inflation. The Commerce Department's pending revisions to non-market price estimates may reduce the 12-month PCE by a few percentage points.

Federal Reserve Governor Waller said that GDP growth is still at a “steady” level, and rising stock prices should support consumption growth. Waller said the labor market is doing well, and the August employment report is expected to continue this trend. Waller believes there is some upward risk in inflation, but wage growth is in line with expectations and is returning to 2%. Waller said that the three-month core inflation showed a “significant improvement” and that the pace was “encouraging.” Regarding PCE, Waller said that overall PCE and core PCE are not the best indicators for judging the direction of inflation. The Commerce Department's pending revisions to non-market price estimates may reduce the 12-month PCE by a few percentage points.