Federal Reserve Official: Will Support Rate Cut if Trump's High Tariffs Lead to Soaring Unemployment

Christopher Waller, a member of the Board of Governors of the Federal Reserve System, warned that the trade war initiated by U.S. President Trump might soon lead to a rise in unemployment. It is reported that the current employment situation in the U.S. is at risk due to retaliatory tariffs imposed on American goods by other countries. If foreign customers reduce orders, some export-dependent industries in the U.S. may be forced to lay off workers. Waller stated that if the tariffs remain, they will not significantly affect the U.S. economy before July. If the Trump administration resumes aggressive tariff levels, businesses may start layoffs, and if unemployment rises significantly, he will support cutting interest rates. Waller emphasized that if the labor market deteriorates severely, he expects more rate cuts soon.