Fed governor says Supreme Court tariff ruling unlikely to change rate outlook

A Federal Reserve governor said the Supreme Court’s decision striking down President Trump’s broad tariffs was unlikely to alter his view on interest-rate policy, and that he would support pausing cuts in March if the labor market continued to stabilize. Mr. Waller, speaking at an event hosted by the National Association for Business Economics, acknowledged the extreme uncertainty around the tariffs.

He noted Mr. Trump had announced a 15 percent levy under Section 122 that could remain in place for up to 150 days and said the administration had also discussed duties under Section 301. The governor said the ruling “may have a positive impact on spending and investment,” but added that the size and duration of any effect were unclear, and reiterated that tariffs typically cause only a temporary boost to consumer prices and can be “looked through” by policy makers.

The Fed held its policy rate at a 3.5 to 3.75 percent range last month after three quarter-point cuts between September and December. Mr.

United States

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