Fed Governor Christopher Waller believes the inflationary impact of President Trump's proposed tariffs will be "transitory," using two words that have drawn criticism from the Fed during the inflation wave of 2021–2022. "I can imagine there will be pushback that this was a mistake because of what happened in 2021 and 2022... But just because it wasn't true once, doesn't mean we shouldn't continue to consider it." Two possible scenarios: In the case of large and prolonged tariffs, he predicts a sharp rise in inflation in the short term, perhaps to 4%–5% before cooling as growth slows and unemployment rises. In the scenario with smaller tariffs, inflation could rise to around 3% and then fall. In both cases, Governor Waller said the Fed would still be able to cut interest rates, just in different timing. Large tariffs could force the Fed to cut early to support growth, while smaller tariffs could pave the way for a cut later this year.