President Donald Trump says that tame inflation means the Federal Reserve should already be reducing its policy rate, but inside the U.S. central bank the idea has little traction, with only two Fed policymakers to date embracing the possibility of a rate cut at the central bank's next meeting in July.

Trump's top central bank overseer said inflation appears to be on a path back to 2% and expects “only minimal impact” from trade policy.

Federal Reserve chief Jerome Powell on Tuesday said a good case could be made for cutting interest rates soon, but he said the Fed is holding off for now because of an expected increase in inflation from U.