02:42 PM EDT, 08/12/2025 (MT Newswires) -- Kansas City Fed President Jeffrey Schmid (voter) said that interest rates should not be lowered right now with the economy still strong and inflation above the Fed's target. He conceded that effects of tariffs on inflation are expected to be modest and that he would alter his views on monetary policy if conditions began to deteriorate.

Richmond Fed President Tom Barkin (nonvoter) said that monetary policy is well positioned to adjust monetary policy if needed but said the balance between upward pressure on inflation and upward pressure on unemployment is still unclear and that inflation growth will depend on how consumers react to higher prices that result from tariffs.

President Donald Trump, in addition to demanding that the FOMC begin to cuts interest rates, said that he is considering allowing a "major" lawsuit against the Fed regarding the costs of renovations to the Fed's headquarters to move forward.

Recent comments of note:

(Aug. 9) Fed Vice Chair for Supervision Michelle Bowman said that the weaker-than-expected July employment data bolster the case for three rate cuts this year, suggesting that labor demand has softened considerably from earlier in the year, in line with her expectations.

(Aug. 8) St. Louis Fed President Alberto Musalem (voter) said that above-target inflation and the slowing labor market are both risks to the US economic and that policy makers need to decide which is the bigger problem and by how much when charting the path for monetary policy. Musalem said that it is likely that the impact of tariffs on inflation will only be short-term but noted there is a chance that they could have a more lasting effect.

(Aug. 7) President Trump nominated Council of Economic Advisers Chair Stephen Miran to fill Governor Adriana Kugler's seat on the Fed board for the remainder of her term that runs through January. It is possible that Miran could be available to vote at the FOMC's September meeting.

(Aug. 7) Atlanta Fed President Raphael Bostic (nonvoter) said that he still sees one rate cut as appropriate for this year even as the July employment data, particularly the large revisions to previous months, suggest a greater risk to that side of the Fed's mandate. Bostic added that the uncertainty in the current environment makes it harder to predict the appropriate policy path going forward, with the key question being whether the inflation impact from tariffs turns out to be a one-time event or more persistent.