Fed Governor Michelle Bowman said in a speech yesterday that she’s “mindful that the remaining benefits to the economy from our asset purchases are now likely outweighed by the potential costs.”

“Provided the economy continues to improve as I expect, I am very comfortable at this point with a decision to start to taper our asset purchases before the end of the year and, preferably, as early as at our next meeting in November,” she added.

Bowman also noted that the asset purchases have “essentially served their purpose.” She’s particularly concerned that “asset purchases could now be contributing to valuation pressures, especially in housing and equity markets.” The loose monetary policy could now “pose risks to the stability of longer-term inflation expectations.”

Full speech here.

Boston Fed President Susan Collins suggested that it may become “appropriate to begin easing policy later this year,” highlighting the importance of a “methodical, forward-looking approach” to gradually reduce rates.

Collins anticipated further inflation deceleration would might necessitate further slowdown in economic activity. However, she noted the “considerable uncertainty” surrounding the magnitude and timing of this slowdown. The path ahead, as Collins notes, is expected to be “bumpy,” as suggested by hotter-than-expected employment and price increase readings.

In this context, it will be important to focus on seeking “sustained, broadening signs” of progress towards its dual mandate goals, acknowledging that such progress may unfold unevenly. Collins cautions against setting overly stringent expectations for the data, indicating that “expecting all data to speak uniformly is too high a bar.”

Yesterday, Atlanta Fed President Raphael Bostic expressed guarded optimism and highlighted the “significant progress” in controlling inflation. He observed, “Inflation is well off its highs that we saw in the last year. And recent numbers have come in promising in ways that suggest that we might be seeing continued declines.”

Bostic pointed to the ongoing economic evolution as in line with an “orderly slowdown,” which he views as “quite promising”. As such, he advocated to be cautious, patient and resolute” in policy-making.

He also voiced concerns about the risk of overtightening monetary policy. “I think we are in a phase now where there is some risk of us overtightening. And so we’ve just got to have that in mind,” he said. By exercising appropriate caution, Bostic believes that the damage to employment can be minimized.

Looking forward, Bostic said, “My baseline outlook doesn’t contemplate any cuts until the second half of next year at the earliest.” He insists on being “resolute to make sure that we don’t move our policy posture in a different direction until we’re absolutely, absolutely certain that inflation is going to get to our target.”