MaisonHarkonnen
Edited
Federal Reserve Governor Christopher Waller indicated that interest rate cuts could be considered in the near future if the high tariffs imposed by the Trump administration remain in place. He emphasized that these tariffs could significantly slow down the U.S. economy, increasing the risk of a recession, even if they cause a temporary rise in inflation. Waller outlined two scenarios: one with average tariffs of 25%, which would require faster and more significant rate cuts, and another with tariffs reduced to 10%, allowing for a more patient approach to monetary policy. He stressed that, in a context of rapidly slowing economic activity, the risk of recession could outweigh concerns about inflation, thereby justifying proactive action by the Fed. $SPX500 (SPX500 Index (Non Expiry)) $NSDQ100 (NASDAQ100 Index (Non Expiry)) $DJ30 (DJ30 Index (Non Expiry)) $SPY (SPDR S&P 500 ETF) $QQQ (Invesco QQQ)
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