MW Fed's Waller turns cautious on rate cuts and warns of a 'lasting increase in inflation'
By Jeffry Bartash
Influential Fed governor no longer pushing lower borrowing costs
Fed governor Christopher Waller is worried about the low level of hiring in the U.S. economy, but he's even more worried about inflation.
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Federal Reserve Governor Chris Waller said the surge in oil prices tied to the Iran war and lingering effects from U.S. tariffs could "lead to a more lasting increase in inflation," potentially forcing the central bank to eschew further interest-rate cuts.
Waller is an influential voice at the Fed who voted repeatedly last year to cut interest-rate cuts at a time when many of his colleagues were reluctant to reduce borrowing costs. The Fed eventually lowered rates three times in the last four month of 2025.
Yet Waller voted to maintain a key U.S. interest rate at current levels when top Fed officials convened again in mid-March. In his latest speech, Waller again counseled caution until the outcome of the conflict with Iran is resolved.
"For inflation, the risk is that the longer the conflict drags on and energy prices remain high, the more likely it is that these elevated prices will bleed into other prices," Waller said in a speech on Friday.
-Jeffry Bartash
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(END) Dow Jones Newswires
April 17, 2026 14:04 ET (18:04 GMT)
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