Christopher Waller, member of the Board of Governors of the Federal Reserve System (Fed), warned of possible job cuts in case of reintroduction of Trump’s administration aggressive tariff policy. At the same time, he expressed readiness to support the reduction of interest rates if the unemployment rate shows a significant increase. Such statements were made during an interview on Bloomberg Television.
According to Waller, the impact of tariffs on inflation is temporary, as a price rise caused by duties will not last indefinitely. This position contradicts the views of Fed Chairman Jerome Powell, who warns of the risks of a prolonged period of elevated inflation.
Considering the current situation, Waller noted the absence of serious impact on the economy until July. However, after this period, if tariffs remain high, unemployment growth may accelerate, the expert believes. In his opinion, companies will start to optimize costs and cut staff.
Another Fed official, Beth Hammack, also spoke out on the issue, not ruling out a rate adjustment as early as June if the regulator has clear data on the country's economic condition. The next Fed meeting is scheduled for May 6-7 in Washington.