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Christopher Waller, a member of the Board of Governors of the Federal Reserve System, warned that the trade war triggered by President Trump could soon lead to an increase in the unemployment rate. It is reported that due to retaliatory tariffs imposed by other countries on American goods, the current employment situation in the U.S. is at risk. If foreign customers reduce orders, some U.S. industries that rely on exports may be forced to lay off workers. Waller stated that if tariffs remain at their current levels, there will be no significant impact on the U.S. economy before July. If the Trump administration reinstates aggressive tariff levels, businesses may begin to lay off employees, and if the unemployment rate rises sharply, he would support interest rate cuts. Waller emphasized that once the labor market deteriorates significantly, he expects more interest rate cuts to come soon.
