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Federal Reserve Vice Chairperson for Supervision Michelle Bowman has become the second leader within the central bank to declare a rate cut could be imminent.

Speaking at a banking conference in Prague, Czech Republic, Bowman stated, “If inflation remains near its current level or continues to move closer to our target, or if the data show signs of weakening in labor market conditions, it would be appropriate to consider lowering the policy rate, moving it closer to a neutral setting.”

Bowman added the tumult that many feared from President Trump’s tariff policies have yet to appear while “some retailers seem unwilling to raise prices for essentials due to high price sensitivity among low-income consumers and as supply chains appear to be largely unaffected so far.” She praised the resiliency of the economy and suggested a rate cut could occur as soon as next month.

“Before our next meeting in July, we will have received one additional month of employment and inflation data,” she said. “If upcoming data show inflation continuing to evolve favorably, with upward pressures remaining limited to goods prices, or if we see signs that softer spending is spilling over into weaker labor market conditions, such developments should be addressed in our policy discussions and reflected in our deliberations. Should inflation pressures remain contained, I would support lowering the policy rate as soon as our next meeting in order to bring it closer to its neutral setting and to sustain a healthy labor market.”

Bowman follows Fed Governor Christopher Waller, who stated last Friday that the central bank was “in the position” to enact a rate cut “as early as July.”