From CNBC:

Federal Reserve Governor Adriana Kugler stated that inflation is slowing down, thanks to moderating wage growth and minimized price hikes. With consumer spending expected to increase and firms raising prices less frequently, Kugler anticipates further disinflation. While considering reduced interest rates, she emphasized the need to monitor economic data closely.

Meanwhile, Minneapolis Fed President Neel Kashkari expressed caution about immediately reducing rates. While saying that two or three cuts may be appropriate based on current data, he stressed the importance of carefully assessing the inflation progress against economic growth. Kashkari believes there could be compelling arguments to suggest a longer, higher rate environment going forward.

Despite market expectations for aggressive reductions in rates, Fed officials, including Chairman Jerome Powell and policymaker Kugler, have been pushing back on this narrative. Powell suggested policymakers move carefully as they observe inflation against broader economic growth. Additionally, Kugler stated that she will be watching the economic data closely to verify the continuation of progress on inflation. With economic data showing resilience, Kashkari believes that there may not be as much downward pressure on demand as anticipated, indicating that more time is needed to assess the data before adjusting interest rates.

This story will be updated to reflect other developments from multiple Fed speakers during the day.



Read more: Fed Governor Kugler backs caution on rates; Kashkari expects only two or three cuts