TechFlow, June 2 — According to Jinshi News, Federal Reserve Governor Waller stated that some moderately sized tariff policies would not be passed on to consumers, but tariffs could lead to one-time price increases, which the Fed could tolerate. The outlook for rate cuts depends on inflation slowing and whether tariff measures remain at the lower end of the range. Additionally, strong economic performance through April has given the Fed time to assess evolving trade conditions.
However, considerable uncertainty remains in the trade policy outlook. Tariff measures could raise the unemployment rate, with this effect potentially persisting, while the economy and labor market face downside risks and inflation faces upside risks. The "good news" is that rate cuts could still be possible later this year.
