A short-lived bump in tariff-driven inflation could pass quickly enough to allow interest-rate cuts this year, especially if levies ease, Federal Reserve governor Christopher Waller said. New trade barriers are likely to push up prices in the short term,

By Michael S. Derby (Reuters) -Federal Reserve Governor Christopher Waller said Sunday that interest rate cuts remain possible later this year even as the Trump administration’s tariff regime is likely to push up price pressures temporarily.

Fed Governor Christopher Waller made dovish comments in his opening remarks on Sunday at the 2025 Bank of Korea International Conference. In prepared remarks, Waller said he would support “good news” rate cuts later this year if the effective tariff rate settles close to his lower tariff scenario and the underlying inflation continues to progress