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A Federal Reserve member calls for an interest rate cut soon due to Trump tariffs
Christopher Waller, a member of the Federal Reserve Board of Governors, has called for a reduction in interest rates in the United States due to the trade war ignited by President Donald Trump, stating that it poses a significant shock to the American economy.
Waller mentioned during an event in St. Louis on Monday that if the large tariffs imposed by Trump continue for some time, the American economy will slow down significantly, which could prompt the Fed to cut interest rates despite rising inflation.
He added, "If the economic slowdown expands into a recession, I support the Federal Open Market Committee reducing the interest rate as soon as possible, and at a faster pace than previously expected," as reported by CNBC.
Speaking about inflation, Waller noted that high tariffs could push the core personal consumption expenditures index to 5%, but this increase would be temporary, and the Fed could avoid it and continue to lower rates to boost growth.
He further stated, "If the average tariffs imposed by the White House approach 10%, the Fed can be patient before making any decisions regarding monetary policy."
