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Fed's Waller Says Swift War End Could Keep Rate Cut Hopes Alive
Waller said inflation could stay elevated if energy prices remain high, and the Fed may hold rates until the outlook becomes clearer.
- On Friday, Federal Reserve Governor Christopher Waller said the Middle East war drives near-term inflation, though a fast end to the conflict would keep the door open to cutting interest rates later this year.
- The Strait of Hormuz remains a focal point as elevated energy prices, with Brent crude trading at about $95 a barrel, risk embedding inflation across goods and services if the conflict persists.
- Data shows March energy costs rose 10.8%, while personal consumption expenditures inflation nears 3.5%, as businesses struggle with hiring uncertainty in a labor market where job creation needs are near zero.
- At their upcoming April 28-29 meeting, Federal Open Market Committee officials are widely expected to hold the current interest rate target range steady between 3.5% and 3.75%.
- Waller framed his outlook around two scenarios, warning that if energy prices remain high, back-to-back inflationary episodes could prove harder to contain than those seen during the pandemic era.
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11 Articles
11 Articles
The director of the US Federal Reserve believes that the labor market remains weak in the US, and that the Fed might have to "keep interest rates in the current range if the risks to inflation outweigh the risks to the labor market."
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Coverage Details
Total News Sources11
Leaning Left1Leaning Right1Center6Last UpdatedBias Distribution75% Center
Bias Distribution
- 75% of the sources are Center
75% Center
13%
C 75%
12%
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