Fed Official Urges Caution on Rate Cuts as Iran War Drags On

Federal Reserve Governor Christopher J. Waller signaled conditional support for rate cuts later this year, but only if labor market weakness deepens—a cautious stance amid broader economic uncertainty. Waller's remarks come as geopolitical tensions, specifically an ongoing conflict with Iran, add unpredictability to inflation and growth forecasts. The Fed has been carefully weighing whether to lower rates from their current levels, balancing concerns about persistent inflation against potential slowdowns in employment. Waller's position reflects the central bank's hesitation to move too quickly on cuts without clearer signs of labor market deterioration. His comments suggest the Fed will remain data-dependent, watching employment figures closely before committing to any rate reduction timeline.