Federal Reserve governor Michelle Bowman supports a rate cut "as soon" as July, becoming the second central bank policymaker in recent days to be explicit about an easing of monetary policy in the near term.

Bowman made the argument for such a move in a speech Monday, saying that inflation has declined or come in below expectations over the past several months and asserting that trade policy will only amount to "minimal impacts" on the Fed's preferred inflation measure.

She also cited concerns that downside risks to employment could "soon become more salient, given recent softness in spending and signs of fragility in the labor market."

"Should inflation pressures remain contained, I would support lowering the policy rate as soon as our next meeting in order to bring it closer to its neutral setting and to sustain a healthy labor market," Bowman said in her speech in Prague.

Bowman's support for a cut represents a shift in her views since last fall, when she dissented against a jumbo 50-basis-point reduction in September 2024 due to her concerns that inflation was not yet under control.

It also does not align with recent comments from Federal Reserve Chair Jerome Powell, who said last week that the Fed should hold rates as it evaluates the tariff-related inflation he expects to see this summer.

The Fed, which has a dual mandate to maintain stable prices and maximum employment, has spent the past three years trying to get inflation back to a 2% target. Some policymakers are still concerned that President Trump's tariffs could pose a longer-lasting threat to stable prices.

Bowman joins fellow Fed governor Christopher Waller in calling for a cut at the Fed's next policy meeting on July 29-20. Waller on Friday told CNBC that "we could do this as early as July."

"I think we've got room to bring it down, and then we can kind of see what happens with inflation," Waller said, adding that the central bank could pause if needed due to a shock from developments in the Middle East.

Read more: How the Fed rate decision affects your bank accounts, loans, credit cards, and investments

The comments from Bowman and Waller highlight a growing divide within the central bank as the debate about a rate cut grows louder.

That division was evident last week in the Fed's latest "dot plot" outlining future interest rate moves. While eight officials saw two cuts still happening in 2025, seven officials predicted no cuts at all — up from the four officials who made that call previously.