Two senior Federal Reserve officials signalled the central bank is edging closer to reducing borrowing costs and may need to move more aggressively than the two quarter-point cuts policymakers projected earlier this year, as economic growth slows and tariff-related price pressures remain muted. San Francisco Fed President Mary Daly told Reuters on 4 August that “the time is nearing for rate cuts.” While two reductions still “look to be an appropriate amount of recalibration,” Daly said the Fed "might have to do more than two" if labour-market softness deepens. She pointed to July’s 73,000 job gain and a rise in the unemployment rate to 4.2% as evidence the jobs market is cooling, and said she is increasingly uncomfortable repeating the Federal Open Market Committee’s July decision to keep the target range at 4.25%–4.50%. Minneapolis Fed President Neel Kashkari, in a CNBC interview on 6 August, echoed those concerns, saying the economy is “clearly slowing” and that it “may still be appropriate in the near term to begin adjusting the policy rate.” Kashkari said two cuts this year “still seem appropriate,” but added the Fed must be ready to act more forcefully if conditions worsen, while remaining prepared to raise rates again should inflation re-accelerate. He noted the central bank has yet to see definitive evidence that the 145% tariff on Chinese goods is feeding through to broader price pressures. The remarks highlight growing unease within the Fed ahead of its 16–17 September meeting. Daly said every meeting is now “live,” and both officials underscored the need to balance the risk of waiting too long against the possibility of inflation surprises, suggesting a more active policy debate is taking shape.