Chris Waller: Even if tariffs push up inflation, I'd still prefer to cut rates this year

Odaily News Fed mouthpiece Nick Timiraos reports: Fed Governor Chris Waller said he remains more confident than his colleagues that the inflationary impact of tariffs will be temporary and that inflation expectations will remain anchored.
He pointed out that although some surveys show that consumers expect inflation to rise, the current labor market is not overheated and workers lack sufficient bargaining power to push wages up. He said: "I think workers don't have as much bargaining power to ask for a pay raise now as they have in the past few years. Instead, they are more worried about keeping their jobs."
As a result, even if labor market conditions are OK, he is inclined to "see through" tariff-induced inflation and supports his baseline expectation of a rate cut this year.