Federal Reserve Governor Christopher Waller indicated he was initially inclined to support a rate cut following weak February employment data. However, worsening inflation prospects and rising uncertainties in the Strait of Hormuz led him to adopt a cautious stance, ultimately supporting the decision to keep rates unchanged. Waller emphasized that current policies are already restrictive and sees no need for further rate hikes. He anticipates that if inflation subsides in the latter half of 2026, coupled with a weakening job market and stable macroeconomic conditions, there could still be room for a rate cut within the year.