Fed’s Waller Cautious on Oil, May Advocate Rate Cuts Later

Federal Reserve Governor Christopher Waller said he is cautious about how surging oil prices on the back of the Iran war will impact inflation, though a weak job market may still call for interest-rate cuts later this year.

“Caution is warranted,” Waller said Friday in an interview on CNBC. “It doesn’t mean that I’m going to stay put for the rest of the year. I just want to wait and see where this goes, and if things go reasonably well, and the labor market continues to be weak, I would start advocating again for cutting the policy rate later this year.”