San Francisco Fed President Mary Daly has pushed back against the need for an interest rate cut of 50 basis points at the Federal Reserve's September meeting, the Wall Street Journal reported on Thursday.

Futures markets are also expecting a rate cut. Investors peg the chances of a quarter-point interest rate cut at nearly 96%, according to the CME FedWatch Tool, a measure of market sentiment.

With the job market faltering and consumer prices not surging as expected, investors increasingly believe the Federal Reserve is about to cut interest rates to boost the economy.