Fed's Waller says strong August inflation could prompt support for September rate hike

Fed Governor Waller's conditional openness to a September hike if August inflation prints strong reinforces the market's data-dependent tightening bias. This raises the probability of a higher-for-longer policy path, pressuring rate-sensitive assets and extending restrictive financial conditions. The immediate transmission is via front-end yields and a firmer dollar, with cross-asset risk appetite likely to stay constrained ahead of the inflation release.