Federal Reserve Board Member Warns: Trump's High Tariffs May Trigger Unemployment Wave; Fed Will Consider Rate Cuts in Response
Christopher Waller, a member of the U.S. Federal Reserve Board, recently issued a warning, stating that the trade protection policies implemented by the Trump administration could lead to a sharp deterioration in the U.S. job market.
He pointed out that due to retaliatory tariffs imposed by multiple countries on U.S. goods, American companies that rely on exports are facing severe challenges. If overseas orders continue to decline, related industries may be forced to lay off large numbers of employees.
Waller analyzed that the current tariff policy is unlikely to have a significant impact on the economy before July, but if the government further raises tariff barriers, a wave of layoffs could follow.
He clearly stated that if the unemployment rate shows an abnormal spike, he would support the Federal Reserve in implementing rate cuts. This Fed official emphasized that once serious signs of recession in the labor market appear, the Federal Reserve should quickly initiate rate cuts to stabilize the economy.