--- title: "Federal Reserve Governor Waller: The U.S. economy faces a \"tricky combination\" that may keep interest rates unchanged for a longer period" type: "News" locale: "en" url: "https://longbridge.com/en/news/283201744.md" description: "Federal Reserve Governor Waller stated that the U.S. economy faces a \"tricky combination\" and may need to maintain interest rates unchanged for a longer period. He pointed out that high inflation currently coexists with a weak labor market, and policymakers need to balance controlling inflation with supporting employment. Waller warned that companies may quickly lay off workers amid hiring difficulties and an uncertain economic outlook. Additionally, he expressed a cautious view on inflation, believing that recent price shocks may persist, leading to inflation remaining elevated for a longer time" datetime: "2026-04-17T23:20:04.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/283201744.md) - [en](https://longbridge.com/en/news/283201744.md) - [zh-HK](https://longbridge.com/zh-HK/news/283201744.md) --- # Federal Reserve Governor Waller: The U.S. economy faces a "tricky combination" that may keep interest rates unchanged for a longer period According to the Zhitong Finance APP, Federal Reserve Governor Christopher Waller stated on Friday that the current economic environment is posing greater challenges for interest rate decisions, and the central bank may need to maintain interest rates at their current levels for a longer period. Waller pointed out that the U.S. economy is facing a "tricky combination," with a potential prolonged inflation shock on one hand and stagnant employment growth while the overall labor market remains stable on the other. In this context, policymakers need to balance controlling inflation with supporting employment. In a public speech, Waller said, "The coexistence of high inflation and a weak labor market presents a very complex situation for policymakers." He emphasized that if the risks of inflation outweigh the risks to employment, maintaining the current interest rate range would be a reasonable choice. Currently, the market generally expects that, in light of the uncertain economic outlook, the Federal Reserve will keep interest rates unchanged for the remainder of the year. Waller's latest remarks also reflect a change in his assessment of the labor market. Although he previously expressed concerns about a slowdown in hiring, the latest signs indicate that the hiring growth needed to keep the unemployment rate stable may be close to zero, suggesting that the job market can still maintain relative balance in a low-growth environment. However, he still warned that businesses are in a "tightrope" situation, facing difficulties in hiring suitable employees while also holding a cautious attitude towards the economic outlook, which may lead them to quickly resort to layoffs in the face of economic shocks. Regarding inflation, Waller's stance is relatively more cautious. He believes that the price shocks resulting from the U.S.-Israel conflict may not be a temporary phenomenon, and combined with the cost increases driven by previous tariff policies, this could lead to more persistent upward pressure on inflation. He noted that this continuous price shock may resemble the situation during the COVID-19 pandemic, potentially pushing inflation to remain high for a longer period ### Related Stocks - [.NDX.US](https://longbridge.com/en/quote/.NDX.US.md) - [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md) - [.DJI.US](https://longbridge.com/en/quote/.DJI.US.md) - [VFH.US](https://longbridge.com/en/quote/VFH.US.md) ## Related News & Research - [Trump threatens to fire Powell if he doesn't leave Fed board; probe to continue](https://longbridge.com/en/news/282854511.md) - [US economy heading toward fragile growth despite strong stock prices](https://longbridge.com/en/news/282701403.md) - [Iran conflict rattles energy infra but can't shake America's bull run](https://longbridge.com/en/news/283032788.md) - [TABLE-U.S. March industrial output falls 0.5 percent](https://longbridge.com/en/news/283008109.md) - [JPMorgan Q1 revenue beats estimates, helped by Markets & Investment banking](https://longbridge.com/en/news/282674776.md)