Dallas Fed President Lorie Logan suggested at an event overnight that interest rates might not be “as restrictive as” policymakers had anticipated.

Emphasizing the need for flexibility, she added, “It’s really important to keep all options on the table and that we continue to be flexible.”

Nevertheless, Logan also noted there are “good reasons” to believe that inflation is heading back to 2%, ” perhaps a bit slower and a little bit clunkier maybe than we thought at the beginning of the year.”

Atlanta Fed President Raphael Bostic told Fox Business overnight that he does not expect further rate hikes to be necessary to bring inflation down to the target. However, he cautioned that if inflation were to reaccelerate, “I’d have to take on board the likelihood that a rate increase is appropriate.”

Bostic emphasized the need for economic data to show the economy is “sufficiently strong” and that inflation is moving closer to Fed’s 2% target before supporting any rate cuts, but he clarified, “That’s not my outlook today.” He anticipates that inflation will decrease “very slowly” over the year, reaching 2% target by 2025 or later.

New York Fed President John Williams told CNBC overnight that current monetary policy is “well-positioned” and “restrictive” enough to help bring inflation down to target levels. He added that further rate hikes are unlikely, stating, “I don’t see that as the likely case.”

Williams highlighted that interest rates in the US will “eventually need to come down” based on data analysis, but the timing will depend on how effectively the Fed achieves its goals. He expects inflation to moderate in the second half of this year as the economy finds better balance and global inflationary pressures ease.

However, Williams emphasized, “Inflation is still above our 2% longer-run target, and I am very focused on ensuring we achieve both of our dual mandate goals.”

Atlanta Fed President Raphael Bostic indicated that interest rate cuts might be on the table by the fourth quarter of this year, provided economic conditions align with his expectations.

“My outlook is that if things go according to what I expect — inflation goes slowly, the labor market slowly and orderly moves back into a sort of a weaker stance, but a stable-growth stance — I’m looking at the end of the year, the fourth quarter, as the time where we might actually think about and be prepared to reduce rates,” Bostic said.

While acknowledging that the breadth of inflation remains high, Bostic noted that a reduction in this breadth would increase his confidence in making rate cuts. He mentioned that many of the inflation measures “are moving back into the target range,” suggesting progress towards Fed’s goals.

Fed’s Beige Book indicates that most Federal Reserve Districts experienced “slight or modest” economic growth, while two Districts saw no change in activity. The overall economic outlook has become more “pessimistic” due to increased uncertainty and greater downside risks.

Employment across the country grew at a slight pace, with eight Districts reporting “minimal to modest” job gains and the remaining four seeing no changes. Wage growth was generally moderate, with some Districts noting that wage increases have returned to pre-pandemic levels or are moving towards those rates.

Prices rose modestly over the reporting period, and this trend is expected to continue in the near future.

Full Fed’s Beige Book here.