Emre Yumlu 
Christopher Waller, one of the key figures shaping the monetary policy of the U.S. Federal Reserve (Fed), delivered critical messages to the markets.
FED Is Considering a Rate Cut!
Commenting on the potential timing of interest rate cuts, Waller drew attention with his statement: “The rate cut process could begin as early as July.”
Waller noted that they had been expecting a sudden surge in inflation over the past six months, but such a shock has not materialized. He emphasized that monetary policy remains in a “restrictive” zone. Therefore, he stated that starting the process early would provide flexibility to pause if necessary.
How Will Tariffs Impact Inflation?
Waller also touched on the topic of tariffs, which has recently come back into focus. He argued that the planned 10% additional tariffs on imported goods would not place significant pressure on overall inflation.
“We don’t see second-round inflation effects from tariffs. It’s important for the Fed to look through these temporary impacts rather than respond directly to such price increases,” said Waller, suggesting that price hikes stemming from global trade policies would have limited effects.
Is a Rate Cut on the Way?
Waller’s remarks indicate that the Fed has gained more flexibility in terms of a possible rate cut. While September is being discussed as a potential date for a cut in the markets, a move in July is now a strong possibility.
According to experts, Waller’s statements show that an optimistic tone is beginning to prevail within the Fed. In particular, the continued stability in core inflation may support the Fed taking action without further delay.
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