Fed Governor Lael Brainard said the economic outlook is “solid” as supported by consumer spending. However, business spending has been “lackluster” with soft sentiment. And, lower inflation expectations could be entrenched if Fed allows inflation to run below target for too long. And, that would make it even hard for Fed to cushion the next downturn.

She expressed her support for a rate cut as “taking into account the downside risks at a time when inflation is on the soft side would argue for softening the expected path of monetary policy according to basic principles of risk management.”

Though, she added, “of course, my judgment about the actual path of policy will continue to be influenced by the evolution of the data and the risks.”

Atlanta Fed President Raphael Bostic said he would to to July’s FOMC meeting with an open mind. But, “I do feel that with respect to both objectives of our dual mandate, we are in a good position,” suggesting he’s not backing a rate cut for now.

Bostic noted expectations regarding the economic outlook “are remaining pretty stable”. And, “I am not seeing the storm clouds actually generate a storm yet.” he has been talking business people in the last couple week. He noted, “they are not leaning back…They are not cutting jobs, They are not cutting investments that have already been underway. While “they are cautious… they haven’t stopped… they’ve just slowed”.

On inflation, he said “the best measures suggest it is close to target and not materially trending away from it.”

New York Fed President John Williams said that case for rate cut is getting stronger. And, market expectation on Fed’s rate cut are already helping spending.

He said “if anything, relative to earlier in the year, the conditions, the arguments for adding policy accommodation have strengthened over time, and I think that’s the way I continue to view it.” And, “the markets expect cuts so therefore you see lower mortgage rates, you see lower interest rates, and stronger financial conditions broadly, and I think that contributes to more consumer spending and business spending.”

On the economy, he said it’s in a “good place” but appears now to be “growing at a more moderate pace” than last year”. He pointed to the uncertainties, “especially related to trade and global growth”. And, “we have issues around inflation expectations being soft, obviously inflation continuing to run below 2%.”

In a Bloomberg interview, Richmond Fed President Thomas Barkin rejected the idea that a July rate cut is a done deal. He emphasized “we have a lot of time left before the meeting, we’ll see what happens.”

For now, he said the economy was not heading to a recession. He added “I actually still feel pretty good about the economy… I don’t see any issues on the consumer side of the house”.

Though, risks to outlook is “a little more tilted to the downside” for fragile business confidence. Indicators for second-quarter growth are less strong.