--- type: "Topics" locale: "en" url: "https://longbridge.com/en/topics/40014827.md" description: "$SPDR S&P 500(SPY.US)【Fed Governor Waller Cautious on Rate Cuts, Warns of Prolonged Conflict Risks】Gold Ten Data, April 18 - Federal Reserve Governor Waller stated that due to the energy shock caused by the Iran war, he is cautious about the need for interest rate cuts in the short term and warned that the conflict could have a lasting impact on inflation. In his speech, Waller outlined two main scenarios. In the first scenario, if the Strait of Hormuz reopens and trade flows return to normal, officials would be able to ignore the surge in energy prices and shift their focus to the weak job market later this year. He said, if this happens, "I think there is a prospect that underlying inflation will continue to fall back towards the 2% target, which would make me cautious about cutting rates now and more inclined to support the labor market through rate cuts later this year, when the outlook is more stable." However, he warned that oil prices and the overall market are underestimating the risk of the conflict becoming prolonged. "On the inflation side, the risk is that the longer the conflict lasts and the longer energy prices remain high, the greater the possibility that these high prices will seep into other prices, as businesses factor in high energy input costs when pricing." He said that if this happens against a backdrop of a weak job market, it would limit the room for policy response. In this case, he would weigh the risks between higher inflation and a weaker labor market, "If the inflation risk outweighs the labor market risk, this could mean keeping the policy rate in the current target range."" datetime: "2026-04-17T18:17:11.000Z" locales: - [en](https://longbridge.com/en/topics/40014827.md) - [zh-CN](https://longbridge.com/zh-CN/topics/40014827.md) - [zh-HK](https://longbridge.com/zh-HK/topics/40014827.md) author: "[猎猫奇](https://longbridge.com/en/profiles/14197524.md)" --- # $SPDR S&P 500(SPY.US)【Fed Governor Waller Caut… ### Related Stocks - [SPY.US](https://longbridge.com/en/quote/SPY.US.md)