Federal Reserve's Waller: Tariff impacts may be short-term disturbances, still supports year-end rate cuts if inflation is under control

Federal Reserve Governor Waller stated in South Korea that if inflationary pressures do not continue to worsen and the labor market remains robust, he supports considering interest rate cuts in the second half of 2025. He pointed out that the tariff policy of the Trump administration may temporarily push up prices, but if tariffs ultimately fall within the expected lower limit, inflationary pressures could be a one-time pulse rather than a sustained upward trend. Waller's remarks reflect the internal policy game within the Federal Reserve regarding tariffs, inflation, and interest rates, emphasizing the delicate balance between "anti-inflation" and "stabilizing growth" in the face of trade policy uncertainty