According to BlockBeats, on February 18, Federal Reserve Governor Christopher Waller expressed that the new tariffs imposed by U.S. President Donald Trump's administration are expected to have only a moderate impact on prices. He suggested that the Federal Reserve should largely disregard these tariffs when formulating monetary policy.
Waller emphasized that uncertainties related to trade or other government policies should not prevent the Federal Reserve from taking necessary actions. He cited past events such as the 2022 Russia-Ukraine conflict and the 2023 Silicon Valley Bank collapse, which did not deter the Fed from adjusting interest rates despite raising concerns about the economic outlook.
In his speech, Waller acknowledged that the impact of tariffs might be greater than anticipated. However, he also noted that other policies under discussion could potentially have positive supply effects and exert downward pressure on inflation.
Waller agreed that maintaining the current policy stance is appropriate until inflation decreases again. He mentioned that this could be a matter of time, pointing out that the recent "disappointing" rise in the Consumer Price Index (CPI) might be due to seasonal data adjustments rather than increasing price pressures. Waller was appointed as a Federal Reserve Governor during President Trump's first term.