Bowman is the second central banker in recent days to suggest tariffs are likely to have a temporary and muted impact on prices.

A top Federal Reserve official who resisted an aggressive cut last year said she is open to easing interest rates as soon as next month, in a sign support is building among policymakers for a looser monetary stance.

Federal Reserve (Fed) vice-chair for Supervision Michelle Bowman, recently tapped by President Trump as the US central bank's top bank overseer, says the time to cut interest rates is getting nearer as risks to the job market may be on the rise.