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Fed Governor Signals Possible Rate Cuts Amid Tariff Impact

6/2/2025

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Summary

Story summary

U.S. Federal Reserve Governor Christopher Waller suggested possible interest rate cuts later this year due to temporary inflation from tariffs.
He emphasized that tariff-induced inflation is unlikely to be long-lasting and should not influence policy rates.
Waller highlighted potential risks to economic activity and employment, warning that higher tariffs could raise unemployment.
South Korea's economy is feeling the impact of U.S. tariffs, with a 1.3% decline in exports in May.
In response, the Bank of Korea has lowered its key interest rate to bolster economic support.

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Story summary

U.S. Federal Reserve Governor Christopher Waller suggested possible interest rate cuts later this year due to temporary inflation from tariffs.
He emphasized that tariff-induced inflation is unlikely to be long-lasting and should not influence policy rates.
Waller highlighted potential risks to economic activity and employment, warning that higher tariffs could raise unemployment.
South Korea's economy is feeling the impact of U.S. tariffs, with a 1.3% decline in exports in May.
In response, the Bank of Korea has lowered its key interest rate to bolster economic support.