Fed Governor Waller: Iran war creates 'more of a concern' for inflation

• Initially considered supporting a rate cut two weeks ago after a negative jobs report, believing oil price spikes would be short-lived.
• The closure of the Strait of Hormuz and the prospect of a more protracted conflict with Iran suggest oil prices will remain high for longer.
• This prolonged geopolitical tension and its effect on oil prices have increased his concern about inflation.

Fed Governor Waller has shifted his stance on inflation, now expressing 'more of a concern' due to the protracted conflict with Iran and its potential impact on oil prices. This contrasts with his earlier view two weeks ago, when a negative jobs report led him to consider supporting a rate cut.