Christopher Waller, a potential contender to be the next chair of the central bank, said the Federal Reserve should not wait for the labor market to weaken to reduce interest rates.

San Francisco Federal Reserve President Mary Daly reiterated on Thursday it is "reasonable" to expect two interest rate cuts before the end of this year, particularly with the impact of President Donald Trump's tariffs looking more muted than originally expected.

One of the chief reasons the Federal Reserve should cut interest rates now, a top central banker argues, is because the economy has gotten weaker and is likely to stay weak for the rest of the year.