In a revealing interview with Bloomberg, Federal Reserve Governor Christopher Waller emphasized that tariffs have become a central issue in today’s economic discussions, noting that uncertainty is constraining corporate decisions across sectors.
Businesses Under Strain
Waller explained that many firms are still trying to navigate the evolving tariff landscape. He warned of a likely surge in layoffs and rising unemployment, as companies seek to cut labor costs to deal with increased expenses.
Inflation and Demand Slowdown
Describing recent economic progress as “uneven,” Waller believes the impact of tariffs could result in slower consumer demand, potentially easing inflationary pressure. However, he maintained that such effects would likely be short-lived.
Fed May Respond with Rate Cuts
Waller didn’t rule out that a sudden spike in joblessness could lead the Fed to consider cutting interest rates. Yet, he stressed that any decision will remain data-driven, although this reactive approach may delay necessary policy moves.
