Fed Governor Waller signals caution on rate cuts following Middle East oil shock

Apr 18, 2026, 12:10:37 AM UTC(1 day ago)

Impact: Medium

Affected Assets

Federal Reserve Governor Christopher Waller stated that a developing oil shock and persistent inflation risks have necessitated a more cautious approach to interest rate policy
Waller noted that while he previously considered a rate cut due to job losses, the impact of the Iran war and surging energy prices has shifted the focus toward maintaining current rates
The overall personal consumption expenditures price index is projected to hit 3.5 percent in March 2026, significantly above the Federal Reserve target of 2 percent
Market reactions included a surge in stocks and a drop in oil prices following reports that the Strait of Hormuz might remain open to shipping despite the conflict
Waller warned that a sequence of price shocks could embed higher inflation across various goods and services if energy prices remain elevated for an extended period

Fed's Waller strikes a cautious tone on rate cuts amid oil shock https://t.co/irKWClYrJJ