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Trump approval rating ticks lower, weighed by economic concerns, Reuters/Ipsos poll finds

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WASHINGTON — President Donald J. Trump’s approval rating ticked slightly lower this week to 42%, matching the lowest level of his new term as Americans kept a dour view of his handling of the US economy, according to a new Reuters/Ipsos poll.

The results of the three-day poll, which concluded on Sunday, showed a marginal dip from a week earlier when a Reuters/Ipsos survey showed 44% of Americans approved of the job Mr. Trump was doing as president. The poll has a margin of error of 3 percentage points.

While low by historical standards, Mr. Trump’s popularity remains higher than it was for much of his first term as president and is also stronger than what his Democrat predecessor Joseph R. Biden had during the second half of his 2021-2025 term.

Mr. Trump’s high point remains his 47% rating in the hours after his return to the White House in January. His approval has shown little movement in recent weeks. Just 39% of respondents in the poll said Mr. Trump was doing a good job managing the US economy, unchanged from a week earlier.

Mr. Trump won the 2024 presidential election on a promise to bring about a golden age for the US economy, but his aggressive measures to reshape global commerce — including levying heavy tariffs on major trading partners — have increased the risks of recession, economists say.

Inflation rates in the United States soared under Mr. Biden but have been trending lower for several years. Some 33% of respondents in the latest Reuters/Ipsos poll gave Mr. Trump a thumbs up on how he was managing the cost of living, up from 31% a week earlier.

Many economists, however, expect inflation will heat back up as tariffs put pressure on the profits of importers. Mr. Trump on Saturday urged Walmart, the world’s largest retailer, to “eat the tariffs” instead of blaming them for the retailer’s increased prices. He has urged the country’s independent central bank, the Federal Reserve, to lower interest rates, but central bankers have also expressed worry over the prospects of higher inflation.

The Reuters/Ipsos poll, carried out online and nationwide, surveyed 1,024 US adults May 16-18. — Reuters

Donors pledge over $170M to WHO ahead of US exit

UNITED STATES MISSION GENEVA

GENEVA — China, Qatar, Switzerland and others pledged over $170 million for the World Health Organization (WHO) at its assembly on Tuesday, the agency said, and countries also accepted higher fees to help offset the expected loss of the US, the top donor.

“In a challenging climate for global health, these funds will help us to preserve and extend our life-saving work,” Dr Tedros Adhanom Ghebreyesus, WHO director-general, said in a statement on new donations covering 2025-2028.

A WHO list showed that host Switzerland gave $40 million; Sweden gave $13.5 million; Angola gave $8 million; Qatar gave $6 million; while other pledges came from the Novo Nordisk Foundation and ELMA Philanthropies.

It did not include an earlier $500 million pledge from China since the WHO said calculations are ongoing.

“These efforts deliver a strong signal of China’s support to WHO during this reform process,” said Dr. Lei Haichao, China’s health minister. A spokesperson for China’s diplomatic mission said this pledge included both mandatory fees and voluntary donations and support for other projects.

Even before the current financial crisis, the WHO had been seeking to overhaul its funding model to make it less dependent on donations from a few big economies. Washington had provided 18% of its funding.

US President Donald J. Trump, who has criticized the body for its handling of COVID-19, announced his intention to withdraw on Day One of his presidency on Jan. 20 — a move that takes a year to implement. On Tuesday, US Health Secretary Robert F. Kennedy Jr. dismissed the organization as “moribund.”

The WHO has already revised down its 2026-2027 budget by a fifth to $4.2 billion and cut management posts.

The new budget, formally adopted on Tuesday by the assembly which is seeking to address the funding crisis, will increase countries’ mandatory fees by 20% over the next two years and make China the new top state donor.

“Our common goal must be to initiate prompt reforms to safeguard the organization,” said Björn Kümmel, head of Unit Global Health in Germany’s health ministry. — Reuters

UST keeps general championship at UAAP 87, to host Season 88

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UNIVERSITY of Santo Tomas (UST) extended its reign with yet another general championship in UAAP Season 87 and in the process inherited the hosting torch from the University of the Philippines (UP) for Season 88 at the closing ceremony on Tuesday at the Mall of Asia Arena.

Proving their staple as the best collegiate sports program across all disciplines, the Growling Tigers ruled the overall race in the collegiate and high school divisions for the record-extending eighth and ninth consecutive season, respectively.

“It only shows the continued dominance ng sports program in UAAP,” said Fr. Rodel Cansancio, OP, Director of the UST Institute of Physical Education and Athletics.

“It will continue to serve as a challenge for all of us to do better next season.”

The Growling Tigers’ championship was followed by the ceremonial turnover of hosting duties from University of the Philippines President Angelo “Jijil” Jimenez, chairman of UAAP Season 87, to UAAP Season 88 chairman and Very Rev. Fr. Richard G. Ang, OP of Santo Tomas.

Overall, it’s the 48th general title for Santo Tomas in the seniors and 24th in the juniors division for the most in 87 seasons of the country’s premier academic league.

The Growling Tigers collected 346 points in the collegiate behind eight championships while the Tiger Cubs amassed 313 points in high school built on 11 titles.

Santo Tomas ruled collegiate men’s beach volleyball, men’s chess, women’s tennis, men’s and women’s table tennis, poomsae, men’s judo, and women’s fencing. Overall, the school placed in the podium of 24 out of 31 seniors disciplines.

The Tiger Cubs then won the boys’ and girls’ 5-on-5 basketball, girls’ 3×3 basketball, boys’ volleyball, boys’ beach volleyball, boys’ and girls’ table tennis, boys’ and girls’ swimming, boys’ football, and boys’ athletics including a podium in 23 of 24 events.

UP (269) and De La Salle University (261) placed second and third, respectively, in the collegiate race while La Salle-Zobel (167) and National University (NU)-Nazareth School (155), in order, completed the podium in the high school division.

Meanwhile, Woman FIDE Master Ruelle Canino of Far Eastern University (FEU)-Diliman and jin Chelsea Tacay of UST were named the UAAP Season 87 Individual Athletes of the Year.

Liam Salangsang of FEU-Diliman, David Andrei Dungo of La Salle and Kacey dela Rosa of Ateneo de Manila University were recognized as UAAP Season 87 Team Athletes of the Year.

Also feted were the top athlete-scholars in James Paulo Javinal and Shaina Nitura of Adamson University, Liaa Margarette Amoguis and Joaquin Custodio of Ateneo de Manila University, Pi Durden Wangkay and Shane Francine Lugay of La Salle, Liam Salangsang and Susan Ramadan of FEU, Vilmarie Toos and Clarence Sarza of NU, Nina Canlas and Leah Jane Lopez of University of the East, Olympia Ducanes and Hye Jun Lee of UP, as well as Iana Sotaridona and Keziah Chua of UST. — John Bryan Ulanday

Chicano rules Jeddah Tribe triathlon series in Saudi

JOHN LEERAMS CHICANO — FACEBOOK.COM/JOHNLEERAMS

SOUTHEAST Asian Games gold medalist John Leerams Chicano recently claimed the overall championship in the Jeddah Tribe Season 24-25, a prestigious triathlon series in Saudi Arabia.

All the Filipino ace, who was backed by the Philippine Sports Commission and Triathlon Association of the Philippines, needed to do was come through with a pair of runner-up finishes in the final two stages to seal the crown.

He was second and missed the gold medal by just 12 seconds in the final stage early this month and, the month before, also had a runner-up effort in the penultimate stage and succumbed by a minute and nine seconds.

Ali Alzoobie topped both stages.

Mr. Chicano’s biggest triumph came in the inaugural leg when he reigned supreme and won a sprint distance in January ahead of a field that included Mr. Alzoobie, who managed just third place in that leg.

“I thank the Lord for the strength,” said Mr. Chicano, who was also backed by Storck Philippines, Bikestop, Sen. Pia Cayetano, VBD, Rudy Project and Metro Pacific Tollways Corp. President Arrey Perez. — Joey Villar

CSB beats Letran to claim NCAA lead, books final four slot

COLLEGE OF ST. BENILDE LADY BLAZERS — FACEBOOK.COM/NCAA.ORG.PH

Games on Wednesday
(Filoil EcoOil Arena)
8 a.m. – CSB vs Mapua (M)
11 a.m. – CSB vs Mapua (W)
2:30 p.m. – JRU vs UPHSD (W)
5 p.m. – JRU vs UPHSD (M)

COLLEGE of St. Benilde  (CSB) served first round tormentor Colegio de San Juna de Letran a dish best served cold with a vengeful 25-18, 25-19, 17-25, 25-18 victory on Wednesday to reclaim the lead and book a ticket to the NCAA Season 100 women’s volleyball Final Four at the Filoil EcoOil Arena.

It was sweet revenge for the Lady Blazers, whose historic 43-game win streak that netted them three straight championship sweeps was halted by a stinging 25-22, 25-23, 26-24 defeat at the hands of the Lady Knights last March 8.

“That was in the minds of the players,” said CSB coach Onyok Gettigan referring to that painful defeat.

The win catapulted CSB, seeking a four-peat feat, back on top with a 13-2 record while kicking Letran down to second with a 13-3 mark.

More importantly, it sealed the Lady Blazers a seat to the semifinals alongside their recent victims.

CSB got the job done by limiting super rookie Vanessa Sarie to just 16 points after the power-hitting, high-scoring Bicolana erupted for a career-high 37 hits in a 25-22, 25-19, 23-25, 23-25, 17-15 win by Letran over Arellano University last Friday.

Zam Nolasco also played a crucial role and dropped a match-best 17 points, including 11 off blocks. — Joey Villar

Shai Gilgeous-Alexander, Thunder rout Wolves at opener

SHAI GILGEOUS-ALEXANDER overcame a slow start to score 31 points to lead the Oklahoma City Thunder to a 114-88 home win over the Minnesota Timberwolves in Game 1 of the Western Conference finals on Tuesday.

It was Gilgeous-Alexander’s fourth consecutive game with 30 or more points and his eighth in 12 playoff games this season. He added a game-high nine assists.

With seven minutes left in the fourth quarter, Gilgeous-Alexander drove toward the basket and began falling, flipping the ball toward the bucket as he went down.

The ball rolled around the rim briefly before dropping through, and Jaden McDaniels was called for the foul.

Gilgeous-Alexander finished off the three-point play to put the Thunder up by 14. He finished 10 of 27 from the floor and 0 of 4 from 3-point range, but he made 11 of 14 from the free-throw line.

Early on, the Timberwolves’ defense gave Gilgeous-Alexander fits, holding him to just 2-of-13 shooting in the first half.

Oklahoma City trailed by nine with a little more than a minute remaining in the first half before the Thunder closed on a 6-1 run to cut the deficit to four.

In the second half, Thunder coach Mark Daigneault moved Gilgeous-Alexander off the ball, and it helped the likely Most Valuable Player find a rhythm.

Gilgeous-Alexander scored 12 points in the third quarter as Oklahoma City outscored Minnesota 32-18.

While Gilgeous-Alexander turned up the pressure on offense, it was the Thunder’s defense that played the biggest role in the victory.

Overall, Oklahoma City scored 31 points on 19 Timberwolves’ turnovers. Minnesota managed only 10 points off the Thunder’s 15 giveaways.

Oklahoma City’s Jalen Williams produced 19 points and eight rebounds, while Chet Holmgren added 15 points and seven boards.

The Thunder shot 50 percent from the field and 11 of 21 (52.4 percent) from beyond the arc while holding Minnesota to just 34.9 percent from the floor and 15 of 51 (29.4 percent) from 3-point range.

Julius Randle led Minnesota with 28 points, scoring 20 in the first half. After going 5-for-6 in the first half on 3-point tries, Randle didn’t attempt a shot from beyond the arc in the second half.

Timberwolves star Anthony Edwards wound up with 18 points and nine rebounds. He attempted just one shot, a miss, while playing seven minutes in the fourth quarter. — Reuters

SM Supermalls empowers MSMEs’ future through inclusive resilience

Micro, small, and medium enterprise (MSME) tenants and Department of Trade and Industry (DTI)-supported entrepreneurs gear up for resilience through SM Supermalls’ nationwide Business Continuity Plan workshops.

For SM Supermalls, resilience remains an essential pillar in its pursuit of sustainability. Without safe, secure, and prepared communities, the vision of sustainable development becomes difficult to achieve. This is why the company believes that promoting resilience is not only a matter of operational readiness but a responsibility to the communities and businesses that form the backbone of the economy.

SM Supermalls champions resilience as a shared responsibility, empowering communities and micro, small, and medium enterprise (MSME) tenants nationwide.

At the heart of this commitment are micro, small, and medium enterprises (MSMEs). These businesses are often the most vulnerable to disruptions brought about by natural and man-made hazards. Yet, they represent a critical force in the national economy — generating jobs, driving local commerce, and sustaining livelihoods. Recognizing their importance, SM Supermalls has made it a priority to help cultivate an MSME sector that is resilient.

Across its network, close to 70% of SM Supermalls’ tenants are currently MSMEs. These businesses operate under unique lessee contracts that acknowledge their specific needs and challenges. To support them, SM not only provides space but also promotes an environment that values preparedness and long-term continuity.

Beyond providing retail spaces, SM Supermalls promotes micro, small, and medium enterprise (MSME) resilience through emergency drills and dedicated Business Continuity Planning (BCP) initiatives.

SM Supermalls’ most notable resilience initiative for its MSME tenants is a dedicated Business Continuity Planning (BCP) program launched in 2024. This capacity-building initiative enables businesses to develop tailored Business Continuity Plans and implement adaptive measures to reduce the impact of disruptions. 

SM’s tenants are each provided with free access to 5GB of remote digital storage where they can securely store critical business documents such as their BCPs, permits, registrations, and insurance policies, among others. In the event of a disaster, access to these documents becomes seamless, allowing faster processing of insurance claims and a quicker return to operations.

Business continuity subject matter experts guide micro, small, and medium enterprises (MSMEs) in crafting their own Business Continuity Plans (BCPs) for their company.

To further scale its impact, SM Supermalls established a public-private partnership with the Department of Trade and Industry (DTI), formalized through a Memorandum of Agreement in 2024. Together with ARISE Philippines, a United Nations Office for Disaster Risk Reduction (UNDRR)-affiliated private sector alliance for disaster resilience, the partnership aims to ensure that 6,000 MSMEs have robust BCPs by the end of 2027.

This collaboration is led by DTI Regional Operations Group Undersecretary Blesila Lantayona and Bureau of Small Medium Enterprise Development (BSMED) Director Emma Asusano, alongside SM Supermalls’ Corporate Resilience Department. The shared goal is clear: to safeguard MSMEs nationwide through proactive preparedness.

The Department of Trade and Industry (DTI) – Bureau of Small Medium Enterprise Development and SM Supermalls representatives join together in disaster risk resilience awareness and business continuity for micro, small and medium enterprises.

One key feature of the initiative is the SM-DTI Calamity Recovery (CARE) Booth, activated during times of calamity. Located in malls with communities impacted by disasters, the booth serves as an accessible touchpoint for MSMEs needing post-disaster support — providing a practical and timely response mechanism that bridges the gap between public resources and private needs.

Additionally, SM Supermalls regularly hosts scheduled BCP workshops for MSMEs in collaboration with DTI. These workshops are conducted in centralized SM locations across various regions and are open to both SM tenants and DTI-assisted MSMEs. During these sessions, business owners are introduced to the various risks posed by different types of disasters and are guided step-by-step in developing their own BCPs. These plans are tailored to the unique nature and geographical location of their operations, and the sessions extend to the BCP testing and validation phase to ensure practical application and effectiveness.

The participants are given one month to finalize their BCPs, which must be approved by their business management and submitted to DTI. Since the program’s launch in September 2024, over 1,500 MSMEs have already undergone training, with more scheduled in the months ahead.

“Resilience is not built overnight, and requires education, commitment, and collaboration across different sectors. Knowing this, SM Supermalls continues to invest in long-term resilience not just for its business, but for the broader ecosystem of MSMEs it supports,” said SM Supermalls President Steven Tan. “In doing so, we are reinforcing the fundamental truth that sustainable progress is only possible when communities and businesses are prepared to face the challenges of tomorrow.

 


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Should drug testing for drivers be mandatory?

“The spate of viral road accidents in the past month has led people to wonder whether testing for illegal drugs should be mandatory for individuals with a Philippine driver’s license.

The Philippine Statistics Authority noted that the number of deaths due to land transport accidents rose to 13,125 in 2023, the highest recorded in over a decade.The number also translates to a 7.2% increase from 2022, where 12,240 deaths were recorded.

Interview by Edg Adrian Eva
Video editing by Arjale Queral

Unilab at 80: Staying the Course, Shaping the Future of Filipino Healthcare

Two Generations of Leadership and Commitment. Clinton Campos Hess and Unilab Group’s Chairman Emeritus Jocelyn Campos Hess underscore the mission of Unilab in taking care of the health of the Filipinos.

The country’s leading healthcare company sets its sights on innovation, local growth, and broader impact in the years ahead

Unilab Group, the country’s most-trusted pharmaceutical and healthcare conglomerate, marked its 80th year with a bold signal to the market: it is accelerating its transformation from a humble corner drugstore into a future-ready, innovation-driven healthcare leader.

Celebrating its founding anniversary at the PhilSports Arena, the milestone event gathered over 4,000 employees and partners across the Philippines and Southeast Asia. While the program featured a retrospective of Unilab’s growth and milestones, its main message focused squarely on accelerating momentum for the next 20 years as the company approaches its 100th year.

Founded in 1945 during the post-war recovery period, Unilab began as a small drugstore along Sto. Cristo Street in Binondo. Its founder, Jose Y. Campos, and his business partner, Mariano K. Tan, operated with limited capital, a borrowed corner space, and a single shelf for inventory. From those early days, the company grew steadily through hard work, resourcefulness, and a deep understanding of community needs.

That same entrepreneurial mindset continues to guide the organization today. From its origins in pharmaceutical distribution, Unilab Group invested strategically in building robust manufacturing capabilities to ensure quality, accessibility, and self-reliance in its product supply. Unilab has since evolved into a healthcare conglomerate with capabilities in branded and generic pharmaceuticals, personal care, health services, and animal health.

Clinton Campos Hess, who formally assumed the role of Group Chairman, outlined the company’s strategic vision for the next decade. This includes deepening its role as a key healthcare player in the region. He emphasized the need to align business growth with social responsibility, particularly in reaching underserved communities.

“We must ensure that in pursuing our mission, no one gets left behind,” Campos Hess said during his speech.

Campos Hess also outlined Unilab’s three key strategic pillars: Product Solutions, Health Services, and Education, which are expected to drive new business models, enhance consumer access to healthcare, and hold up broader societal goals.

Infrastructure investments have played a critical role in sustaining Unilab’s competitive edge. Over the past decade, the company established several advanced facilities such as the Amherst and Belmont plants, Beaute Et Sante Laboratories, Inc. (BESLI), South-Unilab Material Management Office (SUMMO), and First Pioneer Distribution, Inc. II (FPDI). These facilities enable high-volume production, quality assurance and control, and industry-compliant storage for specialized therapies including vaccines, oncology, and central nervous system treatments, a testament to Unilab’s commitment to deliver no less than high-quality medicines for the Filipinos.

In addition to business expansion, Unilab has pursued programs that reflect its community-oriented culture. Its 8,000 Hours of Bayanihan campaign encourages employees to collectively log volunteer hours that support health and wellness initiatives nationwide. The campaign reinforces a long-standing principle within the organization: that success is measured not only by financial performance, but by the lives touched along the way.

The group also reaffirmed its role in policy advocacy through the Unilab Center for Health Policy (UCHP). Formally launched last year, UCHP serves as a platform for research, dialogue, and multi-sectoral collaboration aimed at addressing systemic gaps in Philippine healthcare.

Much of Unilab’s progress over the past decades was credited to the leadership of Jocelyn Campos Hess, who formally stepped down and assumed the title of Chairman Emeritus. During her tenure, Unilab expanded its business lines, broadened manufacturing capabilities, and launched initiatives under the Unilab Foundation to support health education, inclusive employment, and therapeutic care for children.

Despite rising competition in both local and regional markets, Unilab has expressed confidence in the company’s direction. The challenge now, it said, is to scale operations while retaining the core values of husay, malasakit, and bayanihan that have long shaped its culture.

As Unilab looks ahead to its 100th year, the company is determined to balance growth with purpose. With its foundations firmly in place and leadership looking outward, Unilab is poised to reinforce its standing not only as an industry leader, but as a partner in working towards healthier Filipinos, one health solution at a time.

 


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Nvidia says US export controls on AI chips to China were ‘a failure’

FILE PHOTO: The logo of technology company Nvidia is seen at its headquarters in Santa Clara, California February 11, 2015. REUTERS/Robert Galbraith/File Photo

 – U.S. export controls on artificial intelligence chips to China were “a failure”, Nvidia Chief Executive Jensen Huang said on Wednesday.

The U.S. Commerce Department issued guidance last week alerting businesses to the risk of violating U.S. export controls by using Chinese chips.

Mr. Huang’s comments came after China on Monday urged the United States to “immediately correct its wrongdoings” and stop “discriminatory” measures following the U.S. guidance warning companies not to use advanced computer chips from China, including Huawei’s Ascend AI chips.

The U.S. action seriously undermined consensus reached at the high-level bilateral trade talks in Geneva, a statement from China’s commerce ministry said, vowing resolute measures if the U.S. continues to “substantially” harm China’s interests.

Mr. Huang, speaking at the annual Computex event in Taipei, said Nvidia’s market share in China dropped to 50% from 95% at the start of former U.S. President Joe Biden’s administration. – Reuters

Canada says G7 finance ministers to focus on restoring stability, growth

FLICKR

 – Finance ministers from the Group of Seven industrial democracies will try to agree on policies to restore global growth and stability, Canadian Finance Minister Francois-Philippe Champagne said on Tuesday, acknowledging that tensions over new U.S. tariffs would continue.

The meetings over the next two days in the mountain resort town of Banff, Alberta, will be about “back to basics” and will include discussions about excess manufacturing capacity, non-market practices and financial crimes, Champagne told a news conference. “I think to deliver for the citizens that we represent, our mission is really about restoring stability and growth,” Mr. Champagne said

He said discussions would take place within the G7 and bilaterally with U.S. Treasury Secretary Scott Bessent about the impact of President Donald Trump’s new tariffs on trading partners, and that there would always be tension around such issues.

“But at the same time, there’s a lot we can achieve together,” Champagne said. “There’s a lot that we are looking to coordinate, our actions, and really tackle some of the big issues around over-capacity, non-market practices and financial crimes.”

Mr. Bessent has sought to push G7 allies to more effectively confront China’s state-led, export-driven economic policies, arguing that this has led to excess manufacturing capacity that is flooding the world with cheap goods and threatening G7 and other market economies.

But G7 members Japan, Germany, France and Italy all face a potential doubling of reciprocal U.S. duties to 20% or more in early July. Britain negotiated a limited trade deal that leaves it saddled with 10% U.S. tariffs on most goods, and host Canada is still struggling with Trump’s separate 25% duty on many exports.

Champagne also said that the G7 group would discuss ways to better police low-value package shipments from China to combat smuggling. The Trump administration has ended a duty-free exemption for Chinese shipments valued under $800, which it has blamed for the trafficking of fentanyl and its precursor chemicals.

Reducing fentanyl trafficking is critical to lifting Trump’s 25% duties on some Canadian and Mexican goods, as well as a 20% duty on Chinese goods.

Champagne appeared with Ukrainian Finance Minister Serhii Marchenko and pledged to continue Canada’s support for Ukraine in its struggle against Russia’s invasion. He also said Canada is considering helping Ukraine build a Canadian-style pension system.

Marchenko told reporters that he would seek to reiterate Ukraine’s arguments for strengthening sanctions against Russia, including through lowering the level of the G7-led $60-per-barrel price cap imposed on Russian crude oil exports. – Reuters

Fed officials expect tariffs to boost prices; White House downplays risk

WIKIMEDIA.ORG

 – Federal Reserve officials said on Tuesday that higher prices are coming on the back of rising U.S. import tariffs and counseled patience before making any interest rate decisions before it is clear whether the inflation shock will be fleeting or more persistent.

“One thing that we’ve heard is that a lot of the tariff impact to date has actually not shown up in the numbers yet. There’s been a lot of front-running, building inventories and all those sorts of things. And we are hearing from an increasing number of businesses that those strategies … are starting to run their course,” Atlanta Fed President Raphael Bostic said on the sidelines of a conference in Florida.

“If these pre-tariff strategies have run their course, we’re about to see some changes in prices, and then we’re going to learn how consumers are going to respond to that,” said Bostic, who now expects the U.S. central bank will have to wait longer for clarity about the economy’s direction and make any changes to interest rates.

“We should wait and see where the economy is going before we do anything definitive,” said Mr. Bostic, who anticipates only a single quarter-percentage-point cut in the Fed’s policy rate this year and several months on the sidelines waiting for the effect of Trump administration policies to become clear.

“I think the best action we can take is to sit on our hands and really carefully go through the data, engage with our communities, hear what they’re thinking about, hear about the choices that they’re making, and see how that all comes together,” Cleveland Fed President Beth Hammack said at an Atlanta Fed event. Her comments were echoed by San Francisco Fed President Mary Daly in a joint appearance.

So far the main impact appears to be in sentiment surveys showing households and businesses are less confident about the economic horizon and expect higher inflation.

In an interview on Bloomberg Television on Tuesday, Stephen Miran, who chairs the White House’s Council of Economic Advisers, pushed back on the idea that the tariffs imposed by the administration so far and potentially added in coming weeks would result in meaningful inflation.

“We have been introducing tariffs since day one of this administration,” Mr. Miran said, yet there has “been no real meaningful effect on inflation,” with recent consumer price index reports coming in weaker than expected.

But Fed officials and analysts say they expect the impact has just not filtered through yet to the economy.

Walmart WMT, the world’s largest retailer and a major importer of goods from China, said last week that price increases were on the way, comments that drew a rebuff from President Donald Trump.

“We can control what we can control,” Walmart CEO Doug McMillon said during the company’s quarterly earnings call. Even trimming the tariffs on Chinese goods to 30%, as the administration recently did in backing off a more exorbitant 145% levy, “will result in higher prices,” he said.

 

INFLATION EXPECTATIONS

The waiting game for Fed officials may prove a long one. The central bank has kept its policy rate in the current 4.25%-4.50% range since December, but says it will remain difficult to anticipate where the economy is heading until the tariff issue and other policies are settled for good – and enough time lapses after that to gauge the impact.

In comments to the Economic Club of Minnesota on Tuesday, St. Louis Fed President Alberto Musalem said the central bank needed to guard first and foremost against a rise in inflation expectations, and key to that effort will be assessing if coming price hikes seem like one-time increases or risk turning into something more persistent.

The tariff plans may have been scaled back, but still “seem likely to have a significant impact on the near-term economic outlook,” Mr. Musalem said, with “direct one-off effects on the prices of imported final goods, indirect effects on the prices of domestically produced goods and services, and possibly second-round effects on inflation.”

Deciding in advance that the effects will fade on their own, “runs the risk of underestimating the level and persistence,” and creating more inflation trouble in the future, he said. – Reuters