A Fed governor says it's almost time to cut interest rates

A top Federal Reserve official said Friday he believes the central bank should move ahead with an interest rate cut next month.

"I think we’re in the position that we could do this as early as July,” Federal Reserve Governor Christopher Waller said in a CNBC interview. “That would be my view, whether the committee would go along with it or not.”

Waller added he doesn't expect inflation that might stem from tariffs will reach a significant level or linger for a prolonged period.

"I don’t think we need to wait much longer, because even if the tariffs come in later, the impacts are still the same," Waller said. "It should be a one-off level effect and not cause persistent inflation.”

The Federal Reserve held interest rates steady after officials wrapped up a two-day meeting on Wednesday. The move left the benchmark rate at its current range of 4.25% to 4.50%.

"The unemployment rate remains low, and labor market conditions remain solid. Inflation remains somewhat elevated," the Fed statement said. It was the fourth meeting in a row in which Fed officials decided to sit tight and not change interest rates in either direction. They still signaled that two rate cuts were on deck for 2025.

President Donald Trump has not let up in his pressure campaign to prod the Federal Reserve to lower interest rates. On Wednesday, he said nothing he's done has successfully persuaded the central bank to lower interest rates.

"Now we have a man that just refuses to lower the Fed rate, just refuses to do it," he said, referring to Fed Chair Jerome Powell. "He's not a smart person. I don't even think he's that political. I think he hates me, but that's okay."