02:35 PM EST, 02/20/2025 (MT Newswires) -- Atlanta Fed President Raphael Bostic (nonvoter) said in an essay that the US economy remains strong, but the Federal Open Market Committee needs to remain vigilant in the face of uncertainties that could change that firm footing.

St. Louis Fed President Alberto Musalem (voter) said that he is concerned about rising inflation expectations as well as changes in fiscal policy that could require the FOMC to act by keeping policy restrictive for longer than expected or even tightening policy. He suggested that the risk of stagflation -- a combination of high inflation and slow growth -- could not be ruled out.

Recent comments of note:

(Feb. 19) Fed Vice Chair Philip Jefferson (voter) echoed comments from other Fed officials, saying that the FOMC can be patient when considering the timing of the next rate reduction.

(Feb. 19) Minutes of the Jan. 28-29 FOMC meeting showed that participants believe they were 'well positioned' to pause rate reductions given the uncertainty of the fiscal policy outlook and still elevated inflation. The minute said that the FOMC would like to see further progress on inflation before considering further rate reductions, particularly given the uncertainty surrounding fiscal policy decisions. The data released since the meeting have provided much assurance that inflation is slowing, and in fact, have shown an acceleration in consumer price gains.

(Feb. 18) San Francisco Fed President Mary Daly (nonvoter) said that monetary policy should not be eased further until there is additional progress on reducing inflation.

(Feb. 17) Fed Governor Michelle Bowman (voter) said that she would like to see more progress on inflation before considering further rate reduction, citing greater risks to price stability as the labor market remains strong.

(Feb. 17) Fed Governor Christopher Waller (voter) said that tariffs should have only a modest impact on prices, and only a temporary impact in any cases, so those effects should not impede the FOMC from making monetary policy decisions.

(Feb. 17) Philadelphia Fed President Patrick Harker (nonvoter) said that inflation remains elevated, but that it is moving in the correct direction and that, combined with a balanced labor market, suggests that the FOMC should hold rates steady.