Waller: Tariffs Could Trigger Inflation Spike, Rate Cuts Possible

Federal Reserve Governor Christopher Waller discussed the economic outlook at the 2025 Bank of Korea International Conference, emphasizing the potential impact of tariffs on inflation. He stated that these measures may peak in late 2025 before ultimately impacting unemployment levels and posing risks to both economic growth and job security. While inflationary pressures are anticipated to increase, Waller also highlighted a possibility for interest rate cuts later this year if inflation slows down and tariff measures remain within acceptable levels. Waller stressed the need for continued monitoring of these factors to inform monetary policy decisions.