(Il Sole 24 Ore Radiocor) - Milano, 20 mar - Federal Reserve governor Christopher Waller said he was cautious about current economic conditions but said an interest rate cut may be possible later this year if the labor market stayed weak.

In an interview with CNBC, Waller said that recent developments in the jobs market as well as the uncertainty over the war with Iran called for a more conservative approach. Waller had previously supported rate cuts.

"If things do reasonably well and the labor market continues to be weak I would start advocating again for cutting the policy rate later this year," he told CNBC.

Waller said he was generally sanguine on inflation which had been impacted by the one-off effect of tariffs.

"I think once we get past tariffs and maybe the second quarter, you're going to see inflation come back down," he.

said. "I don't think there's a need for rate hikes."

(RADIOCOR) 20-03-26 16:35:20 (0445) 5 NNNN