Federal Reserve Governor Waller said he considered voting against rate cuts after the employment data was released.

Investing.com – Federal Reserve Board Member Christopher Waller said on Friday that after the February employment report was released, he was prepared to vote against a rate cut, but escalating inflation concerns changed his stance.

In an interview with CNBC reporter Steve Liesman, Waller stated that the inflation situation has worsened and become more concerning because the Strait of Hormuz remained closed two weeks after the initial closure.

The Fed official pointed out that there is reason to believe that the breakeven employment level could be very low, and added that while he understands the mathematical calculation rationally, he cannot accept it emotionally.

Waller said that the closure of the Strait of Hormuz means that there will be greater inflationary pressures in the future, and oil prices could eventually seep into core inflation.

The Fed official emphasized that being cautious now does not mean the central bank will remain unchanged for the rest of the year. He said he does not know how the situation will develop, but caution is necessary.

Waller added that if the labor market worsens, he will advocate for a rate cut again later this year.

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