"As a big business owner looking at rates at 1% or 2%, I'm definitely saying, 'what do you know that I don't?'"

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.

Federal Reserve Gov. Christopher Waller on Thursday called for the central bank to cut interest rates in July. Waller said

Federal Reserve governor Christopher Waller made his strongest call yet for a rate cut in July as he again argued that any inflation from tariffs would be temporary, underscoring a new divide within the central bank.

Governor Christopher Waller's comments come as tensions between Fed Chair Jerome Powell and President Donald Trump have reached a boiling point in recent days.

With the Federal Reserve's July meeting on the horizon, many prospective homebuyers and homeowners are wondering what it could mean for mortgage rates. After years of relatively high borrowing costs, even the slightest dip could open doors for those hoping to buy or refinance. But the path forward is far from clear.

Federal Reserve Governor Christopher Waller says policymakers should cut interest rates now to support a labor market that is showing signs of weakness. Separately Federal Reserve Bank of San Francisco President Mary Daly Told Bloomberg she still thinks it's reasonable for policymakers to plan on two interest-rate cuts this year,