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NEW YORK (Reuters) -U.S. Federal Reserve Governor Christopher Waller said on Thursday he still sees a path to rate cuts later this year, in comments that observed market pricing levels show investors are worried current Republican budget plans are not doing enough to deal with the deficit. Waller, who was interviewed on Fox Business’s television channel, said the key to the outlook depends on where the Trump administration’s tariff policy settles out. If those tariffs hit the lower end of the range relative to some of the more draconian levels seen as the start of President Donald Trump’s global trade war, then the outlook appears solid.

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