It’s just not realistic to wait until problems show up,” he said. “If we want a soft landing, we can’t be behind the curve.”

Federal Reserve Bank of Minneapolis President Neel Kashkari on Monday said he supported the U.S. central bank's recent interest rate cut, calling it the "right decision" in light of substantial progress on inflation and the risk of an increase in unemployment.

The Federal Reserve's big rate cut has given investors reasons to be cautiously optimistic about stocks, despite "stretched valuations," according to Seema Shah, chief global strategist at Principal Asset Management.