Fed’s Waller on Bloomberg:
- The general tone is many companies are frozen by tariff uncertainty.
- Firms are trying to see how two navigators.
- It wouldn’t surprise me to see more layoffs, higher unemployment.
- Smaller tariffs will have minus pass-through.
- We need better control of budget deficit.
- No obvious reason why tariffs should be off table as part of fiscal debate.
- Not likely by July there will be clear tariff impacts yet.
- Easiest place to offset tariff costs is by cutting payrolls.
- The second half of the year will bring clarity on the impact of tariffs.
- Less level of unemployment but speed of change that focus
- It is possible that tariffs could push up unemployment quickly
- Struggle over last 18 months has been uneven inflation progress
- Still strongly believes tariffs will be one-time price level effect.
- Demand slow down from tariffs would offset some inflation impact.
- It’s going to take courage to stare down tariff price increases and see them as transitory.
- I am willing to look through tariff price increases.
- Rate cuts could come from rising unemployment
This article was written by Greg Michalowski at www.forexlive.com.
