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.

The central bank of Mexico cut its benchmark interest rate by 50 basis points on Thursday, leaving the door open for further cuts.

Federal Reserve Bank of San Francisco President Mary Daly said central bankers need to communicate with flexibility at times of uncertainty, given that using strong forward guidance sometimes “comes with a price.