Fed Governor Christopher Waller said Friday that he doesn't expect tariffs to boost inflation significantly so policymakers should be looking to lower interest rates as early as next month.

Governor Waller signaled potential interest rate cuts as early as July, despite the Fed's decision to hold rates steady over inflation worries amid Trump's criticism.

Investors, not the Fed, control the interest rates that matter most to businesses and consumers. They might demand higher returns if the central bank’s independence comes into question.

U.S. President Donald Trump says the Federal Reserve should set its benchmark interest rate at 1% to lower government borrowing costs, allowing the administration to finance the high and rising deficits expected from his spending and tax-cut bill.