Federal Reserve Governor Christopher Waller said Friday that the central bank should consider cutting interest rates at its next meeting, citing recent subdued inflation data and the expectation that any price increases from import tariffs would be temporary.

Waller’s dovish stance on monetary policy comes as President Donald Trump nears a decision on a successor to Fed Chair Jerome Powell, whose term ends next year.

Trump has repeatedly pressured the Fed to lower rates and has sharply criticized Powell. Waller is seen as a possible contender to replace him, and his support for rate cuts could strengthen his chances of being selected as the next Fed chair.

“Any tariff inflation … I don’t think is going to be that big and we should just look through it in terms of setting policy,” Waller said on CNBC’s “Squawk Box.” “The data the last few months has been showing that trend inflation is looking pretty good … We could do this as early as July.”

Notably, Powell allowed two rate cuts ahead of the November election — towards the end of the Biden administration.

Waller’s comments marked the first public statement by a Federal Reserve official following this week’s Federal Open Market Committee meeting, where the central bank held its benchmark interest rate steady in the range of 4.25% to 4.5%. Projections released during the meeting indicated that officials still anticipate two rate cuts before the end of the year.

Ahead of the meeting, Trump sharply criticized Powell, saying, “We have a stupid person, frankly, at the Fed. I guess he’s a political guy, I don’t know. He’s a political guy who’s not a smart person.”

The Fed provided little clarity on the timing of potential rate cuts. Following the FOMC meeting, Chair Jerome Powell noted significant uncertainty in the economic outlook, citing major shifts in trade policy being implemented by the Trump administration as a key factor.

“For the time being, we are well-positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance,” Powell told reporters.