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Investing.com -- Federal Reserve Governor Christopher Waller recently shared his views on the potential impact of tariffs on the U.S. economy, during an appearance on Bloomberg Television.
Waller expressed a strong belief that tariffs are a one-time price effect, suggesting that businesses may be frozen as a result of these trade measures. He further indicated that it wouldn’t surprise him to see more layoffs if significant tariffs are implemented.
While the full impact of the tariffs may not be seen immediately, Waller anticipates that by July 1, there may not be substantial effects observable. However, he did caution that price increases could occur as layoffs start to happen.
Waller expects to have a clearer understanding of the tariff impact in the second half of this year. He also warned that a serious drop in the job market could lead to more cuts, and potentially sooner than expected.
In the discussion, Waller also underscored the importance of central bank independence for the U.S. economy, noting that the president is free to express his views as he wishes.
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