The markets are buzzing again — and here's why:
💬 Federal Reserve Governor Christopher Waller just said rate cuts could still happen in 2025 — if former President Trump's proposed tariffs stay around 10%. Yep, you read that right. Let’s break it down:
🔍 What’s the deal?
Trump has floated the idea of universal tariffs, suggesting a 10% blanket rate on all imports. Economists and investors have been worried about what this could mean for inflation, growth, and of course — monetary policy.
But Waller’s remarks struck a more measured tone:
📉 If tariffs are kept at 10% or below, the Fed doesn’t see it causing a massive spike in inflation.
Which means… the door to interest rate cuts this year is still open! 🏦
📈 Why it matters:
Wall Street has been obsessing over when the Fed will pivot. With inflation cooling but still sticky, investors are hunting for any signal. Waller’s statement suggests the Fed isn’t ready to slam the brakes just yet — as long as trade tensions don’t spiral out of control.
🧠 Translation for you:
10% tariffs = manageable inflation risk
Manageable inflation = no need to hike rates
No hike = potential for rate cuts to boost the economy
Sounds like a win for markets — if everything stays calm on the trade front.
⚠️ BUT: Waller made it clear that if tariffs rise significantly above 10%, that could change the Fed’s playbook real quick. Higher tariffs could push prices up, and that could kill hopes for lower rates this year.
📊 Investors, take note: This is your reminder that monetary policy is watching trade policy closely. Keep an eye on the campaign trail — it might just influence your portfolio.
Stay tuned.
The markets are listening — and so should you.
#BTCBreaksATH110K #Tariffs
