The Federal Reserve will likely be able to lower interest rates this year, and recent data supports this outlook, Fed Governor Christopher Waller said. In a speech Monday morning in South Korea, Waller argued that inflation from the the Trump administration’s higher taxes on imported goods wouldn’t be persistent.

A short-lived bump in tariff-driven inflation could pass quickly enough to allow interest-rate cuts this year, especially if levies ease, Federal Reserve governor Christopher Waller said. New trade barriers are likely to push up prices in the short term,

Federal Reserve Governor Christopher Waller said he continues to see a path to interest-rate cuts later this year amid his expectations that tariffs will boost unemployment and temporarily increase inflation.