Federal Reserve Governor Waller downplayed the threat of "energy inflation," while the Fed remained committed to its core indicators.

Federal Reserve Governor Jerome Waller stated that he does not believe the war with Iran will have a lasting impact on inflation. He noted that while consumers may experience a "pricing shock" due to rising gasoline prices, policymakers will see through any one-off price increases. In an interview on Friday, Waller said, "This is unlikely to lead to sustained inflation as we consider future policy. That's one of the reasons we don't focus on energy prices. When we look at core measures, they are a better predictor of future inflation." He was referring to inflation measures that exclude volatile energy and food prices. Federal Reserve policymakers are expected to keep interest rates unchanged for the second consecutive time when they meet on March 17-18. Given the stabilizing labor market and inflation remaining above the 2% target, officials have signaled patience in considering further rate cuts. (Jinshi)