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>>Fed Governor Christopher Waller noted that interest rates could remain unchanged this year as inflation appears to be the greater risk.

Fed Governor Christopher Waller noted that interest rates could remain unchanged this year as inflation appears to be the greater risk.

crypthub

4/19/2026, 2:50:10 AM

Policy Stance on Rate Cuts

Fed Governor Christopher Waller said he will support keeping rates unchanged for the rest of the year if inflation remains the bigger threat. He described a potential long‑lasting inflation shock paired with a stagnant labor market. This combination could force the Fed to hold policy steady until clearer economic signals emerge. When inflation risks outweigh labor risks, the policy rate may stay in its current target range for an extended period. Markets already price in a hold stance due to the uncertain outlook.

Labor Market and Inflation Outlook

Waller now sees hiring weakening, with the break‑even hiring rate possibly near zero, meaning minimal job growth could still prevent a rise in unemployment. He warned that employers are walking a tightrope and could face sharp layoffs if an economic shock hits. Price pressures may persist, especially after import tariffs and pandemic‑related disruptions. Sustained inflation risks could keep the Fed’s rates parked longer than many anticipate.

Fed Leadership Uncertainty

President Trump has threatened to remove Jerome Powell if no successor is confirmed by May 15, raising a legal question about who can serve as interim chair. Treasury officials mentioned Vice Chair Philip Jefferson and Waller as possible interim leaders. Powell said he would remain “chair pro tempore” under the law, a stance that could lead to a court clash over Fed independence. Senate hearings for Trump’s nominee Kevin Warsh may be delayed, and historically chairs have stayed on until a successor is confirmed.