Federal Reserve Governor Christopher Waller painted a stagflationary picture of President Trump’s tariff agenda Monday, arguing that the hit to economic growth could be more significant than the upward pressure on prices.

He said he expects the price effect of the tariffs to be “temporary” and that interest rate policy could be more responsive to output and employment effects.

“While I expect the inflationary effects of higher tariffs to be temporary, their effects on output and employment could be longer-lasting and an important factor in determining the appropriate stance of monetary policy,” he said in a speech to financial analysts in St. Louis Monday.

© The Hill