Fed Gov. Waller: Supreme Court ruling on tariffs may have positive impact on spending, investment

• Fed Governor Waller is 'on the fence' about a March rate hike or pause, stating that improving labor market data may tilt policy toward a pause.
• Conversely, Waller suggests there 'could be equal argument for cutting if jobs weakness continues,' highlighting the importance of upcoming data.
• He has concerns that the January jobs report 'may contain more noise than signal' and emphasizes that 'one month of good news is not a trend.'
• Waller believes a Supreme Court ruling on tariffs 'may have positive impact on spending, investment' but notes 'considerable uncertainty' on their continuation and impact on inflation.

Fed Governor Christopher Waller's comments indicate a balanced view on future monetary policy, with a potential tilt towards a pause if labor market data improves, or even cuts if weakness continues. He expresses skepticism about the January jobs report, calling it 'more noise than signal,' and notes uncertainty regarding the impact of tariffs on the economy, though he expects to 'look through' their effect on inflation.