Federal Reserve officials: If Trump's high tariffs lead to a surge in unemployment, they will support interest rate cuts.

GateUser-6433627c · 2025-04-24T18:16:43+00:00

Federal Reserve official Christopher Waller stated that Trump's high tariffs could lead to a rise in unemployment, especially as other countries impose retaliatory tariffs on U.S. goods. Waller indicated that he would support a rate cut policy if the unemployment rate skyrockets. He warned that if the tariff policy continues, it may lead to layoffs by companies, further exacerbating the unemployment issue.

GateUser-6433627c

2025-04-24 18:16:43

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[Federal Reserve Official: If Trump’s High Tariffs Cause Unemployment Rate to Soar, Will Support Rate Cuts] Christopher Waller, a member of the U.S. Federal Reserve Board, warned that the trade war triggered by President Trump could soon lead to a rise in the unemployment rate. It is reported that due to retaliatory tariffs imposed by other countries on U.S. goods, the current employment situation in the U.S. is at risk. If foreign customers reduce orders, some U.S. industries that rely on exports may be forced to lay off workers. Waller stated that if tariffs remain unchanged, there will not be a significant impact on the U.S. economy before July. If the Trump administration resumes aggressive tariff levels, companies may begin to lay off workers, and if the unemployment rate rises sharply, he will support rate cuts. Waller emphasized that once the labor market deteriorates severely, he expects more rate cuts to happen soon.

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