Tariffs increase prices one time, central banks can look through that.Tariff effects not zero, but are not large either.Has been arguing a pretty restrictive policy rate can come down.Unemployment is around long run level.Reiterate case for why July rate cut could happen, says an easing would not be political.THANKS that rates are 150 basis points above the long run steady state neutralSays the Fed is "just too tight" Admits that he is in the minority on this On June 20, after the FOMC meeting, Waller expressed openness to considering a rate cut at the Fed’s next meeting, stating that the central bank shouldn’t wait for the job market to collapse before acting. While he noted that the labor market remains solid, there are signs of strain—such as elevated unemployment among recent graduates. Waller emphasized that the Fed has been on pause for six months, waiting for an inflation shock that hasn’t materialized. He argued that there is now room to bring rates down and then assess the impact on inflation. Regarding tariffs, Waller downplayed their inflationary risk, describing them as a one-time factor that’s unlikely to lead to persistent price increases. Even a 10% tariff on all imports, he said, wouldn’t significantly raise overall inflation. While Waller believes the Fed is in a position to cut rates as early as July, he acknowledged uncertainty about whether the full committee would support such a move. This article was written by Greg Michalowski at www.forexlive.com.