Powell's former speech on Powell's earlier speech on US interest rate cuts

The US Federal Reserve sent a "very strong signal" indicating that it was ready to consider lowering interest rates, according to a former Fed governor.

Sarah Bloom Raskin, a member of the Fed's board of directors from 2010 to 2014, presented this analysis in the light of President Jerome Powell's recent speech, in which he said that the central bank would "act appropriately to support the expansion ".

"I think President Powell has sent a message to markets stating that a rate cut is imminent." This is in essence a very strong signal that the FOMC is ready to talk about reducing rates, "said Raskin, who is now a senior fellow at Duke University, told CNBC's" Squawk Box "on Wednesday.

The FOMC (Federal Open Market Committee), responsible for the definition of US monetary policy, is scheduled to meet on 18-19 June to decide on interest rates.

Investors predicted interest rate cuts by the Fed, even as the central bank earlier indicated its intention to keep monetary policy steady throughout the year. Investors calling for rate cuts have argued that the ongoing trade war between Washington and Beijing threatens to slow down the global economy, with negative consequences for the United States.

Raskin said the tariff fight between the United States and China poses a risk to the US economy because it could harm manufacturers and consumers. She added, "Of course, we have the elephant in the room, who are these rates and their unpredictable nature."

The threat of trade war adds to an already sluggish economy, she added.

The former central banker cited several indicators, such as business investment and demand for products manufactured in the United States, which showed signs of moderation.