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.

By Michael S. Derby NEW YORK (Reuters) -Federal Reserve Governor Christopher Waller said on Thursday he continues to believe the U.S. central bank should cut interest rates at the end of this month amid mounting risks to the economy and the strong likelihood that tariff-induced inflation will not drive a persistent rise in price pressures.

A new report shows inflation has picked up and analysts believe the prices of many goods increased, in part, because of President Trump’s tariffs. It will play into decisions by the Federal Reserve about when and whether to cut interest rates and comes as the president and his team have ramped up their pressure campaign on Fed Chair Jerome Powell.

The Bureau of Labor Statistics on Tuesday released June inflation data, showing prices increased from the prior month. Hours later, President Trump called on the Fed to lower rates.

Some investors had clung to a bit of hope that the Federal Reserve would cut interest rates at its next meeting on July 30. Tuesday's report on inflation brought the chances of that down even further.

The central bank remains cautious, even as calls for rate cuts grow louder from the White House and other policymakers.

The EUR/USD exchange rate pulled back and crossed a key support level after the US released mixed economic numbers last week.

Financial markets are betting the Federal Reserve sticks to its "wait and see" approach to interest rates this summer, but that by September it will have waited and seen enough to start cutting borrowing costs.

On May 1, both UOB One and OCBC 360 slashed their rates, each dropping to 3.30 per cent p.a. when you credit your salary and spend on your card. Just a month later, on June 1, 2025, Standard Chartered turned heads by buffing its Bonus Saver account,