02:35 PM EDT, 04/05/2024 (MT Newswires) -- Fed Governor Michelle Bowman (voter) said that it may be appropriate to cut rates at some point, but it is not that time yet due to the risks of inflation reemerging because of geopolitical issues, a boost in fiscal stimulus or continued housing inflation.

Bowman also said it is possible that the federal funds rate will need to be higher than it was before the pandemic, so the Federal Open Market Committee may not need to cut rates as much as expected and did not rule out that rates may need to be adjusted higher if the progress on inflation is reversed.

Dallas Fed President Lorie Logan (nonvoter) added to recent comments from officials that it is "much too soon" for the FOMC to consider rate reductions due to uncertainty in the economic path and said that the FOMC should be ready to act if inflation does not continue to slow.

Recent comments of note:

(April 4) Richmond Fed President Tom Barkin (voter) said the FOMC can be patient when considering rate cuts as recent data that have indicated an economic slowdown could be just a momentary lapse. Barkin repeated recent comments from Fed officials that the FOMC is prepared to deal with an economy that is overheating or, alternatively, one that slows.

(April 4) Cleveland Fed President Loretta Mester (voter) said that it is not yet time for the FOMC to lower interest rates, but it could be appropriate "later this year" if the economy evolves as expected.

(April 4) Chicago Fed President Austan Goolsbee (nonvoter) said recent higher-than-expected inflation data may not be the start of a trend, but he will be watching the incoming information, especially housing inflation. Goolsbee said that a few months of elevated inflation data does not mean progress toward price stability has been derailed.

(April 4) Minneapolis Fed President Neel Kashkari (nonvoter) said he has penciled in two rate cuts for this year, but cautioned that if inflation continues to move sidewise, it is possible that the FOMC may not be able to lower rates at all, Bloomberg reported.

(April 3) Fed Chair Jerome Powell (voter) said that it could still be appropriate to lower interest rates this year despite the recent stronger-than-expected inflation and employment data, but repeated that decisions will continue to be based on incoming data and made on a meeting-by-meeting basis. Powell added that the FOMC is in good position to navigate between the risks of tightening too soon or too late and to act free of political or personal biases.