Federal Reserve Governor Christopher Waller indicated that keeping interest rates unchanged in September could be appropriate if inflation continues moving toward the 2% target. The Fed currently holds its policy rate at 3.50% to 3.75% and is scheduled to meet on Sept. 15 and 16. The August consumer price index, due before that meeting, is expected to be a key market catalyst. Waller said inflation remains well above target but has improved gradually, while higher energy prices and import tariffs may be temporary drivers. The PCE price index was 3.7% higher in July than a year earlier. Markets reduced expectations for a 25-basis-point September rate increase after Waller's comments, while stocks rose and U.S. Treasury yields moved higher. A rate increase by year-end remains possible and will depend heavily on upcoming inflation and labor-market data. For Bitcoin and other risk assets, a pause could reduce pressure from higher borrowing costs, whereas renewed inflation could strengthen the case for rate hikes, the dollar and Treasury yields.