In a speech today, Fed Michelle Bowman underscored that more action would be necessary to bring inflation under control.

She noted, “I believe that additional policy rate increases will be necessary to bring inflation down to our target over time.”

While acknowledging the influence of the current tighter monetary policy on both economic activity and inflation, she pointed out that “core inflation essentially plateau since the fall of 2022.”

She suggested Fed would need to raise interest rate to a “sufficiently restrictive stance of monetary policy to meaningfully and durably bring inflation down.”

Full speech of Fed Bowman here.

Atlanta Fed President Raphael Bostic shared his insights on the current monetary policy landscape in an interview on Yahoo Finance. Bostic argued for a pause on tightening , suggesting that federal funds rate should remain stable at the current level of 5.00-5.25% for the rest of the year.

“My baseline is that we should stay at this level for the rest of the year,” he stated. He suggested that Fed’s tightening work should be allowed to ripple through the economy.

He asserted, “It takes time for monetary policy changes to meaningfully influence economic activity. We have good reasons to expect our policy tightening will be increasingly effective in coming months.”

Fed Chair Jerome Powell indicated that it’s appropriate to continue tightening. But the Committee would like to assess additional information, before making meeting-by-meeting decisions.

In the prepared remarks for the Semiannual testimony to Congress, Powell said, “Nearly all FOMC participants expect that it will be appropriate to raise interest rates somewhat further by the end of the year.”

“But at last week’s meeting, considering how far and how fast we have moved, we judged it prudent to hold the target range steady to allow the Committee to assess additional information and its implications for monetary policy,” he added.

In determining future actions, Fed will take into account, “account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments”.

“We will continue to make our decisions meeting by meeting, based on the totality of incoming data and their implications for the outlook for economic activity and inflation, as well as the balance of risks,” He said.

Full remarks of Fed Powell here.

Three nominees for key roles at Fed, including two sitting Fed Governors, have pledged to make tackling inflation their primary concern if their nominations are confirmed. This commitment was made in prepared remarks ahead of confirmation hearings before Senate Banking Committee on Wednesday.

Philip Jefferson, the nominee for vice chair, recognized the multifaceted challenges facing the economy including inflation, banking-sector stress, and geopolitical instability. Jefferson said, “The Federal Reserve must remain attentive to them all. Inflation has started to abate, and I remain focused on returning it to our 2 percent target.”

Lisa Cook, who is nominated for a new 14-year term, echoed Jefferson’s concerns about inflation. She stated, “The American economy is at a critical juncture, and it will be essential for the FOMC to act as needed to bring inflation back to our 2% inflation target.”

Adriana Kugler, the nominee chosen by President Joe Biden to fill the vacancy left by Lael Brainard earlier this year, reiterated the same sentiment. Kugler emphasized, “If confirmed, I am deeply committed to setting monetary policy to reduce inflation and promote maximum employment, and to foster the resilience of the financial sector to support job creation and economic growth.”