WASHINGTON, March 20 (Reuters) – U.S. Federal Reserve Governor Christopher Waller said he was planning to dissent in favor of a rate cut at this week’s meeting of the central bank because of unexpected job losses in February, but a developing oil shock and the threat of more persistent inflation convinced him a more cautious approach is needed until the impact of the Iran war becomes clearer.
When the latest jobs report showed a loss of 92,000 jobs last month “I thought that’s it, I’m dissenting,” against the Fed’s decision this week to hold its policy rate steady, Waller said on CNBC’s Squawk Box.
“Since that time, the Strait of Hormuz was closed. This is looking like it’s going to be a much more protracted conflict, and oil prices are going to stay high for a longer time. So that suggested inflation was more of a concern” and could persist depending on how high energy prices rise and for how long.
(Reporting by Howard Schneider; Editing by Chizu Nomiyama)
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