Fed's Waller Cites Tariffs, Energy, AI Demand as Inflation Upside Risks
Fed Governor Christopher Waller identified tariffs, energy prices, and demand from the AI buildout as factors creating upward pressure on inflation, while noting that earlier fears of oil prices broadly pushing up costs have receded.
Federal Reserve Governor Christopher Waller pointed to three factors contributing to upward pressure on inflation: tariffs, energy prices, and surging demand from the artificial intelligence buildout.
However, Waller noted that earlier concerns that higher oil prices could broadly lift price levels across the economy have greatly diminished. His remarks suggest the Fed remains watchful for persistent inflation drivers, even as one key risk—oil-related pass-through—appears to have faded.
Source: First Squawk