Fed should consider cutting rates as early as July, official says

Fed Governor Christopher Waller's remarks come as President Trump is pressuring the Fed Chair Jay Powell to cut interest rates.

Federal Reserve Governor Christopher Waller said Friday that he doesn’t expect tariffs to boost inflation significantly so policymakers should be looking to lower interest rates as early as next month.

In a CNBC interview, the central banker said he and his colleagues should move slowly but start to ease as inflation is now longer a major economic threat.

“I think we’re in the position that we could do this and as early as July,” Waller said during a “Squawk Box” interview with CNBC’s Steve Liesman. “That would be my view, whether the committee would go along with it or not.”

The comments come two days after the Federal Open Market Committee voted to hold its key interest rate steady, the fourth straight hold following the last cut in December.

President Donald Trump, who nominated Waller as a governor during his first term in office, has been hectoring the Fed to lower interest rates to reduce borrowing costs on the $36 trillion national debt.