A top U.S. Fed official, Adriana Kugler, a Fed governor, suggested price cuts at big retailers and weaker sales should point that a slowdown in consumer spending has “finally” begun, increasing the chances that the regulator will venture to finally start lowering interest rates this year.

A recent report showing retail sales in May rose by just 0.1% “may be another signal that the long-expected deceleration in consumer spending may finally be upon us”, Kugler said at an event at the Peterson Institute think-tank in Washington. “If the economy evolves as I am expecting, it will likely become appropriate to ease [monetary] policy at some point later this year,” she added.

Kugler’s comments strike a dovish tone on U.S. interest rates less than a week after Fed officials raised their forecasts for inflation this year, reflecting concern over lingering price pressures.