The Federal Reserve is leaning toward making a series of rate cuts in the upcoming months, amid a sluggish job market and easing inflation, a top official said Friday.

"I believe the time has come to lower the target range for the federal funds rate at our upcoming meeting," said Fed governor Christopher Waller, referring to the central bank's policy meeting from Sept. 17-18.

"Furthermore, I do not expect this first cut to be the last," he added in a speech in Indiana.

But choosing the right pace for cuts will be challenging, said Waller, a voting member of the Federal Reserve's rate-setting committee.

He said he was "open-minded" about the size and pace of cuts, but decisions would be data-dependent.

Waller's comments come after a U.S. government report earlier Friday showed the jobs market cooling in recent months without a collapse in hiring or surge in unemployment.

The world's biggest economy added 142,000 jobs last month – less than analysts expected – while job creation in June and July were revised lower.

The unemployment rate edged down from 4.3% to 4.2%, according to the Department of Labor.

"The current batch of data no longer requires patience, it requires action," said Waller.

He added that Friday's jobs report furthers a longer-term trend of softening in the labor market, and this is consistent with moderate growth in economic activity.

But he stressed that "while the labor market has clearly cooled, based on the evidence I see, I do not believe the economy is in a recession or necessarily headed for one soon."

There may be risks to employment, but Waller added that there is "substantial evidence that the economy retains the strength and momentum to keep growing, supported by an appropriate loosening of monetary policy."

On Friday, New York Fed president John Williams also said he believes it is now appropriate to "dial down the degree of restrictiveness" in policy by reducing the target range for the federal funds rate.