Federal Reserve Governor Christopher Waller emphasized that he still believes tariffs will only cause a one-time price increase, adding, according to Reuters, that “the Fed’s standard playbook is to look through one-time price effects”:

Governor Christopher Waller:

– “Markets are closely watching fiscal policy and there are significant concerns.”

– “Markets are expecting greater fiscal discipline.”

– “The Fed will not purchase bonds in primary auctions.”

– “Hard data shows the economy is performing fairly well, with no clear impact from tariffs yet.”

– “If tariffs stay around 10%, the economy should be fine in the second half of the year.”

– “If tariffs stabilize, the Fed could be in a position to cut rates later this year.”

– “I’m much more optimistic now than I was a month ago regarding the tariff issue.”

– “I’m hopeful the current administration is on the right path.”

– “Businesses are pausing plans, but not canceling them.”

– “We’re not seeing strong signs that tariffs will lead to persistent inflation.”