Fed’s Waller Sees Room for Rate Cuts Despite Tariff Pressures

​Federal Reserve Governor Christopher Waller says there’s still a path to multiple interest-rate cuts this year, even with rising inflation concerns tied to President Trump’s import tariffs.

Speaking in South Korea on Monday, Waller said the inflation caused by recent trade policies is likely to be “transitory”, and not enough to stop the Fed from cutting rates—assuming the job market stays strong and core inflation continues easing toward the 2% target.

“I support looking through any tariff effects on near-term inflation when setting the policy rate,” Waller said. He noted that if tariffs level off around 10%, the economic impact would be modest, with only limited job losses.

Waller is the most vocal member of the Fed pushing for what he called “good news” cuts—reductions driven by improving economic fundamentals, not a crisis. Other Fed officials have adopted a more cautious, wait-and-see tone, wary of inflation risks and still assessing how Trump’s trade policies may affect the broader economy.

While traders see a September rate cut as most likely, Waller suggested the Fed may act sooner if the data keeps moving in the right direction. Still, economists say Fed Chair Jerome Powell is unlikely to support cuts unless he’s confident inflation is firmly under control.

​Bottom line: Waller’s comments add momentum to the idea that rate relief is coming—if the economy keeps cooperating. For now, the Fed’s tone is divided, but easing is still on the table.