Federal Reserve Governor Waller: "The good news" is that there is still a possibility of interest rate cuts later this year

ChainCatcher news, according to Jinshi reports, Federal Reserve Governor Waller stated that some moderate tariff policies will not be passed on to consumers, but tariffs may lead to a one-time price increase, and the Federal Reserve can take a tolerant attitude towards this. The prospect of interest rate cuts depends on the slowdown of inflation and whether tariff measures remain at the lower end of the range. In addition, strong economic performance continued until April, providing the Federal Reserve with time to observe changes in the trade situation.

However, there remains considerable uncertainty regarding trade policy prospects, as tariff measures will raise unemployment rates, and this impact may persist, while there are downside risks to the economy and labor market, and inflation faces upside risks. The "good news" is that there is still a possibility of interest rate cuts later this year.