Fed member says interest rate cuts depend on tariffs path

Federal Reserve Governor Christopher Waller sees potential for rate cuts this year, depending on the outcome of trade talks and the resulting tariff levels.

Speaking to Fox Business, Waller said the key factor for rate outlook is where tariffs ultimately land.

If tariffs fall to around 10% by July, he believes monetary policy will be well-positioned to ease borrowing costs later in 2024.

Waller also pointed to market concerns that GOP budget proposals may not reduce the deficit, and could instead trigger a sharp rise in government borrowing.