Why it matters: It amounts to the biggest divide over the proper course for policy in years, one with delicate political optics as the Trump administration and some Republican lawmakers beat the drum for lower rates.

The Federal Reserve should consider cutting interest rates at its next meeting given recent tame inflation data and the fact that any price shock from import tariffs will be short-lived, Federal Reserve Governor Christopher Waller said on Friday.

Several top Fed officials have voiced support for cutting interest rates in the week after the central bank's latest policy decision.