Federal Reserve Governor Christopher Waller stated that interest rate reductions could occur during the second half of the year despite temporary price increases from Trump administration tariffs.
During his South Korean speech Waller minimized the permanent effects of rising tariffs by stating they would not substantially affect long-term inflation rates. The potential rate cuts which he called “good news” cuts stem from easing inflation rather than recessionary concerns.
MarketWatch
According to Waller the economy would experience only limited disruption from a 10% average tariff rate. The current labor market shows strong performance while inflation rates continue to decrease at a steady pace
