'One Transitory Shock After Another' Fed governor Chris Waller lays out two scenarios: The strait reopens "leaving me cautious about rate cuts now and more inclined toward cuts to support the labor market later this year." Or it doesn't and the Fed can't necessarily project cuts even if the labor market wobbles. "The longer energy prices remain elevated and the Strait is constrained, the greater the chances that higher inflation gets embedded across a wide variety of goods and services."(Nick Timiraos)