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 governor Michelle Bowman supports a rate cut 'as soon' as July, highlighting the growing division within the central bank about whether to ease monetary policy in the near term.