Federal Reserve Governor Waller: Oil Price Shocks Intensify Inflation Risks

SighingCashier · 2026-03-20T15:38:13+00:00

Federal Reserve Governor Waller considered voting against the rate cut due to the unexpected decrease in job positions in February, but given the intensified oil shock and persistent inflation threats, he believes a more cautious approach is needed and decided to maintain the policy rate unchanged until the impact of the Iran conflict becomes clearer.

SighingCashier

2026-03-20 15:38:13

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Federal Reserve Governor Christopher Waller said that due to the unexpected job losses in February, he initially planned to vote against the policy meeting this week because he advocated for a rate cut; but the escalating oil shocks and the more persistent threat of inflation convinced him to take a more cautious stance before the impact of the Iran war becomes clearer.

Waller pointed out on CNBC’s Squawk Box that when the latest employment report showed a decrease of 92,000 jobs in February, “I thought at the time, that’s it, I’m going to vote against,” opposing the Fed’s decision to keep the policy rate unchanged this week.

However, he noted that since then, the Strait of Hormuz has been closed, and the conflict appears to be more prolonged, with oil prices remaining high for a longer period. This indicates that inflation is more concerning and may persist, depending on the extent and duration of energy price increases.

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