Part 6/8:
Discussing the potential repercussions of tariffs, Waller proposed that these may cause a one-time price increase rather than persistent inflation. He referenced established economic frameworks that allow for short-term price adjustments without necessitating drastic reactions from the Federal Reserve.
Further dissecting tariff effects, Waller indicated that tariffs tend to have a defined impact on pricing, estimating that their introduction might add a minimal amount to inflation. Specifically, he suggested that such adjustments would have a limited trajectory, with subsequent economic stabilization likely to occur as inflation trends downward.