Richmond Fed President Tom Barkin warned that inflation pressures remain persistent, with recent data showing signs of renewed pricing power among suppliers.

Speaking at an event in Baltimore, Barkin noted that many firms—still emboldened by the inflation surge of the past two years—are attempting to pass on rising costs, including those tied to tariffs. However, he cautioned that consumers, fatigued by prolonged inflation, may push back. “You’ve got consumers who are exhausted by inflation, who are already trading down,” he said.

Barkin’s comments also touched on the institutional integrity of the Fed amid speculation surrounding Fed Chair Jerome Powell’s future. With Powell’s term set to expire in May next year, US President Donald Trump is widely expected to nominate a more dovish successor.

Barkin emphasized the importance of policy independence, saying he hoped any new appointee would “try to decide the best policy for the country.” He added that rate-setting decisions aren’t necessarily driven by the Fed chair alone.

In a Fox Business interview, Cleveland Fed President Beth Hammack signaled that she sees little urgency for rate cuts given the current strength of the US economy. Hammack said Fed is “pretty close to where the neutral rate is,” and noted that unless there’s “material weakening on the labor side,” she doesn’t see a compelling case for policy easing.

While leaving the door open to shifts based on incoming data, Hammack emphasized that Fed is meeting its employment mandate, but still falling short on inflation. “We’re not there yet on the inflation side of the mandate,” she said, adding that a restrictive stance should be maintained until clear progress is made.

San Francisco Fed President Mary Daly said overnight that the time has come to seriously consider lowering interest rates, citing the need to preserve the current strength of the US economy. “I really am of the view that it’s time,” she said, adding that two rate cuts this year now look like a “likely outcome.” Nevertheless, Daly noted that her preferred timing points to a potential move in the fall, aligning her with the broader consensus on the FOMC, even if some colleagues are advocating for action as early as July.

Daly downplayed concerns that the latest wave of tariffs would necessarily spark inflation, arguing that companies are increasingly absorbing costs or adapting rather than fully passing them on. “It’s possible it just doesn’t materialize,” she said, referring to fears of lasting inflation driven by trade policy.

Cautioning against excessive delay, Daly warned that waiting for persistent inflation before acting could result in a policy mistake. “It’s useful now to sort of recognize that waiting for inflation to rise or become persistent could leave us behind,” she said, emphasizing her desire to stay ahead of the curve.

Fed Governor Christopher Waller made a rare call for immediate easing, stating that inflation has fallen far enough to support a rate cut as early as this month. Speaking in Dallas overnight, Waller said the policy rate is “too tight” given current inflation dynamics and that July presents a viable window for action. “I just made the argument… we could consider cutting,” he said, while acknowledging he’s “kind of in the minority on this”.

Waller dismissed concerns that recent tariffs should delay easing, noting that their impact has so far been narrow and contained. He emphasized that the Fed’s job is to respond to broad inflation trends, not isolated price spikes. “If inflation is coming down, you don’t need to be as restrictive anymore,” he said.

He also emphasized “it’s not political”, saying his position was grounded in economics. With inflation easing, a steady labor market, and the Fed’s rate still well above its long-run neutral level, Waller said a July move would be justified based on data alone.

St. Louis Fed President Alberto Musalem on warned that it’s too early to judge how deeply tariffs might affect US inflation. He projected the average effective tariff rate could land in the high teens to low 20s, but emphasized uncertainty about how the price impact will play out. “It’s too soon to tell” whether tariffs will trigger a one-time price jump or more persistent inflation, he said.

Musalem noted that Dollar depreciation could add to inflation pressures and highlighted differing reactions across businesses. Some firms may absorb the cost increases, while others are likely to pass them through to consumers depending on their profit margins and pricing power.

Despite the tariff noise, Musalem struck a generally upbeat tone on the macro backdrop. He said the economy is in a “good place,” with the labor market at or near full employment and monetary policy only “modestly restrictive.”