03:02 PM EST, 02/27/2024 (MT Newswires) -- Fed Governor Michelle Bowman (voter) said she will "remain cautious" in considering future monetary policy changed and noted that it will "eventually become appropriate" to lower the policy rate.

However, Bowman said that the Federal Open Market Committee is not at that point yet and that cutting rates too soon could require future increases. She added that she is willing to raise rates further if needed if inflation rebounds.

Recent comments of note:

(Feb. 23) New York Fed President John Williams (voter) told Axios that things are moving in the correct direction for the FOMC to lower rates, likely later this year, but said that the Fed will remain data-dependent and move cautiously. Williams said there is not one particular indicator that tells the whole story, but rather a collection of reports that should be viewed together for signs that inflation is slowing toward the 2% goal.

(Feb. 22) Fed Governor Christopher Waller (voter) said the FOMC does not need to hurry to cut interest rates given the strength seen in recent inflation reports and no signs that the Fed's restrictive policy is likely to cause a recession.

(Feb. 22) Fed Governor Lisa Cook (voter) said that she wants more evidence that inflation is slowing toward the 2% goal before beginning to cut the policy rate, citing the risks of cutting too early versus the risk of cutting rates too late.

(Feb. 22) Philadelphia Fed President Patrick Harker (nonvoter) suggested that the FOMC may be "near" the point where it can begin to lower interest rates but said that he does not believe that Fed should begin rate reductions too early or there could be a risk that inflation will reignite.

(Feb. 22) Fed Vice Chair Philip Jefferson (voter) said that progress on inflation and the slowing economy could allow the FOMC to cut rates later this year, but shocks or a deviation from expectations provide some risk. Jefferson cautioned that unexpected shocks could alter the path of rate movements from what is anticipated at the start of the easing cycle, noting that the FOMC will act on the best data available at the time.