Federal Reserve Board member Christopher Waller made notable comments on interest rate policy in a recent statement.
Waller said he had initially considered calling for a rate cut following weak employment data released in February, but that he had changed his mind due to rising inflation risks and geopolitical developments.
Waller said in an interview with CNBC that he opposed the Fed’s decision to keep rates unchanged after 92,000 jobs were lost in February and planned to vote to cut rates. “When I saw that data, I was willing to vote against a rate cut,” Waller said, but stressed that global trends quickly changed the situation.
Waller noted that rising tensions, particularly in the Middle East and the closure of the Strait of Hormuz due to the Iran-related conflict, are driving up energy prices, thereby increasing the risk of inflation. Federal Reserve officials have signaled that high oil prices could persist for an extended period of time and therefore support a more cautious policy approach.
Waller also said that current monetary policy was already at a restrictive level and that he did not support raising interest rates at this stage. However, he added that if inflation starts to fall again and the labor market weakens, another rate cut could be considered in the second half of 2026.
*This is not investment advice.
