St. Louis Fed President Alberto Musalem said on CNBC that his outlook has shifted in recent months, with inflation risks revised “slightly lower” and potential labor market weakness assessed “slightly higher”.

Musalem stressed that his views remain fluid and will continue to evolve ahead of the September FOMC meeting. He avoided committing to a September rate cut but was clear that a 50bps move is “unsupported” by current conditions.

On tariffs, Musalem said any inflationary impact is likely to fade within two or three quarters.

Separately, Richmond Fed President Thomas Barkin said the Fed is still weighing whether high unemployment or sustained inflation poses the greater risk to its dual mandate.

“High unemployment is, in fact, disinflationary. Or is inflation high enough or sustained enough that it’s going to put inflation expectations at risk? And I think that’s the trade-off you’re trying to manage,” Barkin said.

San Francisco Fed President Mary Daly pushed back against the idea of a 50bps rate cut at the September FOMC meeting, a move strongly advocated earlier this week by Treasury Secretary Scott Bessent. In a Wall Street Journal interview, Daly said such a large cut would send an “urgency signal” that doesn’t match her view of the economy’s strength.

“I’m worried it would send an urgency signal that I don’t feel about the strength of the labor market,” she noted.

Daly stressed there’s no need to “catch up,” pointing to a still-solid job market. That’s in contrast to Bessent’s view that if the Fed had seen recent job market data sooner, it could have cut in June and July and now “needs to catch up.”

Atlanta Fed President Raphael Bostic signaled that the strength of the US labor market gives policymakers breathing room before deciding on rate moves. With unemployment near full employment, he said the Fed can avoid rushing into policy changes. “My predisposition is to try not to do that,” he said, emphasizing the need for more clarity before acting.

Bostic stressed that while inflation remains the primary mandate risk, the job market is in solid shape, and the coming weeks should be spent assessing its underlying health. That evaluation will be key in setting the tone for the Fed’s September meeting, he said.

Turning to tariffs, Bostic noted that Trump’s trade measures differ from past experiences in scope, scale, and intent. Rather than simply raising prices temporarily, he said they could fundamentally alter global supply chains, meaning post-tariff inflation could follow an entirely different trajectory. “It is actually a different economy,” he added.

Chicago Fed President Austan Goolsbee said overnight that the next few months will bring “live” policy meetings, as the Fed faces one of the hardest tasks in central banking—getting the “timing” right during “moments of transition”.

Goolsbee expressed caution over assuming the inflationary impact of tariffs will fade quickly, preferring to wait for upcoming wholesale and consumer price data before deciding on the need for a rate cut.

On jobs, Goolsbee downplayed the signal from recent payroll slowing, suggesting it may reflect reduced immigration rather than a broad cooling. With unemployment at 4.2%, “I think the state of the labor market is pretty strong, pretty solid,” he said.