Fed Governor Christopher Waller noted the high court’s ruling to strike down many of Trump’s tariffs comes with significant uncertainty – be it on prices or on spending and investment.
“This ruling is unlikely to have a significant impact on my view of the appropriate stance of policy,” he said in prepared remarks to a conference in Washington.
But he added that the decision “may have a positive impact on spending and investment,” even though it is unclear how big the effect might be or how long it could last.
The Trump administration plans to reimpose at least some of the US leader’s tariffs under other laws, Waller said, adding: “but there is considerable uncertainty over to what extent tariffs will continue.”
Since the court decision, Trump has announced plans to impose a new 15-percent tariff on imports into the United States, a move that can last for 150 days while his administration works on more lasting actions.
On whether Trump’s actions will affect near-term price increases, Waller said: “It is too soon to know.”
While companies could lower their prices as their business costs from tariffs decline, the reimposition of duties also means they might not do so.
Waller said upcoming employment data will shape his view moving forward on whether the central bank should cut interest rates.
“If the good labour market news of January is revised away or evaporates in February, it would support my position at the (Fed’s) last meeting, that a 25-basis-point reduction in the policy rate was appropriate, and that such a cut should be made at the March meeting,” he said. (AFP)
Edited by Robert Kemp
