Federal Reserve governor Chris Waller said Wednesday that he still supports cutting interest rates this year, believing inflation will continue to drift lower despite promises of sweeping tariffs from the new Trump administration.

Federal Reserve Governor Chris Waller said Wednesday interest rates should continue to fall in 2025 as inflation cools further toward 2%, and tariffs aren't likely to have a lasting effect on that trend.

At its December meeting, the FOMC lowered the federal funds rate to a range of 4.25% to 4.5%. Committee members also adjusted their median projection rate for the end of 2025 to 3.9%, up from a projected 3.4% in September.