Wosh insists on cautious market guidance, considering a rate hike in September if inflation is strong

According to the Financial Times, even after deciding not to disclose too many details about interest rate strategies, which led to a significant sell-off of government bonds, Federal Reserve Chairman Waller still insists on his usual concise communication style.

People close to Waller have stated that he acknowledges making some mistakes in the first 10 weeks of leading the world's most important central bank, including failing to reinforce his key messages about price stability and causing confusion about whether his long-term plans to reform the Federal Reserve would affect recent policy decisions. However, they insist that these mistakes are not enough to overturn Waller's plans for Federal Reserve reform.

Informed sources also revealed that if strong inflation data is released in the coming weeks and market expectations for rising borrowing costs increase, Waller is prepared to raise interest rates at the September meeting. The sources added that although the Federal Reserve Chairman has suggested the possibility of reducing the central bank's $6.7 trillion balance sheet to tighten monetary policy, interest rates remain the primary tool and will be used if necessary at the upcoming meeting.