Investor sentiment has turned gloomier this week, but even if no economic downturn materializes, progress on inflation should allow the Fed to continue cutting interest rates, Waller said.

Federal Reserve Governor Christopher Waller said on Thursday that a case for interest rate cuts later this year based on easing inflation still seems most likely to him, but noted that a cut this month is not likely.

In a public appearance Thursday, Federal Reserve Gov. Christopher Waller said the founding fathers supported independent money management and undoing it now would be a mistake.