The Globe and Mail reports in its Tuesday, April 15, edition that the Trump administration's tariff policies could significantly impact the U.S. economy, prompting the Federal Reserve to consider cutting interest rates to prevent a recession, even if inflation remains high, according to Fed governor Christopher Waller. A Reuters dispatch to The Globe reports that Mr. Waller said the Fed for now is left torn between a path in which the economy may "slow to a crawl" and unemployment rise to 5 per cent, and one that looks little different than it did a few weeks ago. If the full suite of tariffs planned by President Donald Trump remains in effect, the impact on inflation may still be temporary, Mr. Waller said, but the "effects on output and employment could be longer lasting. ... If the slowdown is significant and even threatens a recession, then I would expect to favour cutting the policy rate sooner, and to a greater extent than I had previously thought." He said, "With a rapidly slowing economy, even if inflation is running well above 2 per cent, I expect the risk of recession would outweigh the risk of escalating inflation, especially if the effects of tariffs in raising inflation are expected to be short lived."