Waller on Friday said current U.S. inflation trends “are pretty good,” with the annual rise in consumer prices close to the Fed’s 2% target, possibly justifying an interest-rate cut at the bank’s next meeting. He is the first top Fed official to suggest a rate reduction is feasible at that July 29-30 gathering.

The Federal Reserve should consider cutting interest rates at its next meeting given recent tame inflation data and the fact that any price shock from import tariffs will be short-lived, Federal Reserve Governor Christopher Waller said on Friday.

The Fed, helmed by Chair Jerome Powell, is expected to hold rates steady this month despite pressure from President Donald Trump to make cuts.