Fed's Waller: Middle East War Boosts Inflation

Fed Governor Christopher Waller warned the Middle East war could push near‑term inflation higher, complicating rate‑cut prospects.
He expects March PCE inflation to reach about 3.5%, well above the Fed’s 2% target, possibly keeping rates at 3.5‑3.75%.
A swift resolution could bring underlying inflation toward 2% and allow later‑year cuts to support the labor market.
With the FOMC meeting on April 28‑29, officials are expected to hold rates steady amid heightened uncertainty from the conflict.