"Fed's Waller: Tariffs' Moderate Inflation Impact Won't Hinder Policy"
1min read Federal Reserve Governor Christopher Waller recently shared his insights on the impact of tariffs implemented during the Trump administration on inflation and economic policy. Waller suggested that these tariffs are likely to have a moderate effect on pricing, and that such trade uncertainties should not hinder the Federal Reserve's ability to determine monetary policy. He drew parallels to significant events like the 2022 Russia-Ukraine conflict and the 2023 Silicon Valley Bank collapse, which did not impede the Fed's ability to modify interest rates despite their influence on the economic landscape.
In his remarks, Waller acknowledged a potential underestimation of tariff impacts, while also highlighting that ongoing discussions regarding government policy could yield positive supply effects, ultimately helping to alleviate inflationary pressures. He maintained the necessity for a consistent policy approach until inflation rates begin to stabilize. The recent Consumer Price Index (CPI) data was referred to as "disappointing," although Waller speculated that this may be attributed to seasonal adjustments rather than a significant uptick in price inflation.
