Fed's Waller open to rate cuts later this year

Federal Reserve Governor Christopher Waller indicated that interest rate cuts are possible later this year if economic conditions, including inflation and employment, remain favorable, despite the temporary inflationary pressures caused by tariffs. Waller emphasized that trade policy uncertainty and tariff impacts, expected to be most evident in the second half of 2025, will influence the Fed's decisions, but current data and market expectations suggest inflation pressures are contained. He also noted the potential for downside risks to economic activity due to tariffs and global trade tensions.