Atlanta Fed President Raphael Bostic, a voting member of the Fed's rate-setting committee, told the Financial Times that he is "open" to an interest rate cut in September.
According to a report by the Financial Times on Thursday, Bostic warned that the Federal Reserve can't afford to be late in easing monetary policy following recent signs of a cooling jobs market.
Bostic believes that Fed officials need to be conscious of their mandate of maintaining full employment and that now "inflation is coming into range," they have to assess the other side of the mandate, with the unemployment rate rising.
He told the FT that it has him thinking about the appropriate timing and that he is "open to something happening in terms of us moving before the fourth quarter."
He is said to have taken into consideration that it is high stakes for the Federal Reserve as the central bank assesses how quickly and when to move, noting that waiting brings risk and that the Fed's policies "act with a lag in both directions."
"We can't really afford to be late. We have to act as soon as possible," Bostic told the Financial Times.
Bostic's comments will increase the current expectations for a rate cut in September.
In late June, analysts at UBS reaffirmed their outlook for a soft landing for the US economy, telling investors in a note that they expect the Federal Reserve to begin cutting interest rates in September.
"We maintain our base case that the Fed will be in a position to cut rates in September as it receives softer data on growth, the labor market, and inflation," they said.