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 Federal Open Market Committee this week opted to hold rates steady in a range of 4.25-4.5 per cent for the fourth consecutive meeting, even as Trump piles pressure on Powell, whose term as Fed chair expires in May 2026, to slash them.

The Federal Reserve kept the interest rates unchanged on Wednesday, marking its fourth straight meeting without a change. Despite rising inflation and slower growth forecasts, officials still expect two rate cuts later this year.