A top US central banker has played down the prospect of Donald Trump’s trade war stoking inflation, highlighting divisions among Federal Reserve rate-setters on the impact of sweeping tariffs.
Christopher Waller said in Australia on Tuesday morning that Trump’s tariffs would “only modestly increase prices and in a non-persistent manner” — a signal the Fed governor believes the new administration’s trade policies should not affect the central bank’s decision-making.
“I favour looking through these effects,” Waller said.
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