Christopher Waller, a member of the Board of Governors of the U.S. Federal Reserve, said on Monday that an interest rate cut is still possible later this year, despite tariffs imposed by former President Donald Trump's administration potentially causing a temporary increase in inflationary pressures.
Waller explained during a meeting in Seoul, South Korea, that the rise in inflationary pressures linked to higher import taxes approved by Trump is unlikely to persist, saying:
"I support looking through any temporary effects of tariffs on short-term inflation when setting interest rates."
He added
"If the tariffs remain at the lower end of the expected range, core inflation continues to move toward our 2% target, and the labor market remains strong, I would support a rate cut as ‘good news’ later this year
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