Chris Waller: Even if tariffs push up inflation, I'd still prefer to cut rates this year

Fed mouthpiece Nick Timiraos reported: Fed Governor Chris Waller said that he is still more confident than his colleagues that the inflationary impact of tariffs is temporary and inflation expectations will remain anchored. He pointed out that although some surveys show that consumers expect inflation to rise, the current labor market is not overheated and workers lack sufficient bargaining power to drive wage increases. He said: "I think workers don't have as much bargaining power to ask for a pay raise now as they have in the past few years. Instead, they are more worried about keeping their jobs." Therefore, even if the labor market conditions are still good, he still tends to "see through" the inflation caused by tariffs and supports the baseline expectation of interest rate cuts this year.