They were not, though, in a panic or worried about an imminent recession. Instead, they were thinking that the old interest rate would not be appropriate going forward.

Inflation might actually fall too far, the Fed governor says, opening the door wider for more half-point interest-rate cuts.

U.S. Federal Reserve Governor Christopher Waller, one of the more ardent voices in the central bank's battle to hike interest rates to tame inflation, said he supported a larger rate cut this week because he is now worried the pace of price increases is undershooting the Fed's target.