According to Jinshi, Fed Governor Waller said on Friday that the "time has come" to start a series of rate cuts this month, adding that he is open to the size and speed of the cuts. "If the data supports a series of rate cuts, then I think it is appropriate to cut rate cuts. If the data shows that a larger rate cut is needed, then I will also support it."

Fed Chairman Jerome Powell said two weeks ago at the annual meeting of global central banks that given progress in inflation and a cooling labor market, the "time has come" to ease policy. Waller used the same language, but his comments were more hawkish and suggested he was willing to start with a big 50 basis point rate cut.

Data released earlier on Friday showed that job creation averaged 116,000 per month over three months. Waller said that data, along with other recent data, "reinforces the view that the job market is continuing to slow."