Roughly six months after the Federal Reserve hit pause on interest-rate cuts, the central bank remains firmly in wait-and-see mode as it gauges the fallout from President Donald Trump’s trade and other policies that continue to cloud the economic outlook.

A short-lived bump in tariff-driven inflation could pass quickly enough to allow U.S. interest-rate cuts later this year, especially if tariffs themselves ease, Fed governor Christopher Waller said.

The Federal Reserve will likely be able to lower interest rates this year, and recent data supports this outlook, Fed Governor Christopher Waller said.