Federal Reserve Governor Says U.S. Tariff Policy Will Be the Main Driver of Inflation

Chris Waller, a member of the Board of Governors of the Federal Reserve System, stated on the 2nd that tariff policy will become a major factor driving up U.S. inflation, with its impact on inflation likely to be most evident in the second half of this year. Waller pointed out that there is considerable uncertainty in U.S. trade policy, and higher tariffs will reduce consumer spending and disrupt business operations. According to the latest data released by the U.S. Department of Commerce, U.S. personal consumption expenditures rose by 0.2% month-on-month in April, a significant slowdown from March's 0.7%. U.S. media reported that the slowdown in personal consumption expenditures is mainly due to increased economic uncertainty caused by the constantly changing tariff policy.