Boston Fed President Susan Collins described current monetary policy as “well positioned” to adapt based on new economic data and the evolving economic outlook. She is “optimistic” that Fed can achieve 2% inflation target in a “reasonable amount of time” while maintaining a robust labor market. However, she now anticipates that reaching this goal will “take more time than previously thought.”

Collins highlighted “recent upward surprises to activity and inflation”. This has led her to suggest that maintaining the current policy level might be necessary for a longer period than initially expected. She emphasized the importance of ensuring that inflation moves “sustainably toward 2%” before considering any policy adjustments.

Chicago Fed President Charles Evans said today’s CPI data was the first “positive” reading since Fed started tightening. Yet, inflation is still “unacceptably” high”. He expects Fed to continue to raise interest rate to 3.25-3.50% by year end, and to 3.75-4.00 by the end of next year.

Evans was optimistic that the economy will “continue to grow” in H2. “”I’m not looking for the economy to turn down in a significant fashion any time soon,” he added. He expected growth to be 1.5-2.0% next year.

Dallas Fed President Lorie Logan, in her speech on Saturday, emphasized the importance of maintaining tight financial conditions to prevent resurgence of inflation. She expressed concern that if these conditions are not sustained, progress made in controlling inflation could be reversed.

Logan Logan underscored the significant role that restrictive financial conditions have played in “bringing demand into line with supply and keeping inflation expectations well-anchored”.

However, she noted a recent reversal in this trend, pointing out that long-term yields have relinquished much of the tightening observed over the summer. She warned, “We can’t count on sustaining price stability if we don’t maintain sufficiently restrictive financial conditions.”

Logan also addressed the Federal Reserve’s balance sheet runoff. She indicated that it might be appropriate to consider slowing the pace of this runoff, particularly as overnight reverse repurchase agreement balances approach lower levels.

Minneapolis Fed President Neel Kashkari said in a CBS interview on Sunday, “we are a long way away from achieving an economy that is back at 2% inflation, and that’s where we need to get to.”

“Whether we are technically in a recession or not doesn’t change my analysis,” he added. “I’m focused on the inflation data. I’m focused on the wage data. And so far, inflation continues to surprise us to the upside. Wages continue to grow.”

“Typically, recessions demonstrate high job losses, high unemployment, those are terrible for American families. And we’re not seeing anything like that,” he said.

“Whether we are technically in a recession or not doesn’t change the fact that the Federal Reserve has its own work to do, and we are committed to doing it,” Kashkari said.

Philadelphia Fed President Patrick Harker said, “In the upcoming months, in light of the cumulative tightening we have achieved, I expect we will slow the pace of our rate hikes as we approach a sufficiently restrictive stance.”

He added, “at some point next year, I expect we will hold at a restrictive rate for a while to let monetary policy do its work”. What happened after there will be driven by data. “If we have to, we can always tighten further, based on the data.”

“What we really need to see is a sustained decline in a number of inflation indicators before we let up on tightening monetary policy,” he said, adding “we need to make sure inflation expectations don’t become unanchored.”