FED OFFICIAL: MAIN TARIFF EFFECTS EXPECTED BY YEAR-END, RATE CUT REMAINS AN OPTION
Federal Reserve Bank of New York's Christopher Waller continued to minimize the lasting effect of tariffs on inflation in his remarks Monday, emphasizing that any inflationary impact from tariffs should be short-lived and that inflation expectations remain stable.
💬 Additional highlights from Waller’s comments:
💬 The factors behind pandemic-era inflation are not present today.
💬 Tariffs are unlikely to cause ongoing inflation.
💬 Fed policy should focus on real economic activity when inflation is near target.
💬 The Fed is nearing its inflation objective.
💬 There is skepticism that a 10% tariff would push inflation up to 3%.
💬 Markets are already reflecting expectations in long-term yields.
💬 Rising long-term yields are partly tied to government fiscal issues.
💬 Selling government bonds does not present a concern.