By Matt Grossman
Fed governor Christopher Waller has supported rate cuts for most of the past year and dissented against the central bank's decision to hold rates steady in January. He was ready to dissent again this week, he told CNBC on Friday morning-but the closure of the Strait of Hormuz and the potentially inflationary effects of a global oil crunch led him to vote for a pause instead.
"Two weeks ago, when the jobs report came out and it was negative 92,000, I thought, that's it. I'm dissenting," Waller said in the TV interview. "Since that time, the Strait of Hormuz was closed, this is looking like it's going to be a much more protracted conflict, and oil prices are going to stay high for a long time."
Waller's comments show how anxiety about the inflationary effects of the war helped Chair Jerome Powell build an 11-1 majority in favor of holding rates steady this week. Over the past year, Waller has resisted the argument that President Trump's tariffs are likely to lead to sustained inflation, but he warned Friday that an oil shock could be different.
"Oil is a major intermediate import, and it will at some point bleed through," he said.
Earlier Friday, another dovish Fed official who also supported this week's pause, Michelle Bowman, said in a separate TV interview that she still believes weaker hiring could prompt three Fed rate cuts this year.
"I'm still concerned about the job market," she said.
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(END) Dow Jones Newswires
March 20, 2026 09:38 ET (13:38 GMT)
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