Federal Reserve Governor Christopher Waller stated that while there has been no fundamental change in his monetary policy stance since July, his inclination has shifted from concern and a bias towards tightening to initial optimism and a bias towards maintaining interest rates. He explicitly noted that the September 15-16 Federal Open Market Committee (FOMC) meeting will depend on August inflation data. Waller said that recent data show some signs of inflation finally moderating, and if data released in the next two weeks continue to show this trend, he would be inclined to support keeping the federal funds rate target unchanged. However, he also emphasized that considerable uncertainty remains regarding how military conflicts, trade policy, and artificial intelligence will affect prices and economic activity. If the latest August data suggest that the improvement in inflation is only temporary, then raising the policy rate at the September FOMC meeting might be appropriate.