A Fed’s official: We support a rate cut this year despite Trump’s threat

Christopher Waller, a senior policymaker at the US Federal Reserve, said today that he still supports cutting interest rates this year, despite rising inflation and the possibility of imposing wide-ranging tariffs under the incoming Trump administration.

Waller said he expects inflation to approach the Fed’s 2% target in the coming months. In some of the first comments by a Fed official specifically on tariffs, Christopher indicated that higher import tariffs are unlikely to push inflation higher this year.

New York Federal Reserve President John Williams said the US economy remains strong and inflation is likely to continue moving toward the target, warranting further interest rate cuts next year.