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Jinse Finance reported that Federal Reserve's Harker stated she does not believe the Fed needs to raise interest rates to combat what she considers excessively high inflationary pressures, but she acknowledged that this view could change. Although inflation remains high, raising rates "is not her current baseline expectation." The Federal Reserve needs to maintain a moderately tight monetary policy to bring down inflation amid a weakening job market. She outlined factors that could change her view on interest rate policy. She said: "If we see the labor market is healthier than I perceive, if employment data does not indicate the economy is cooling but rather reflects changes in immigration flows, that could alter my perspective. If inflation continues to remain at such a high level instead of declining, then it may mean we need to raise rates in that situation."

Jinse Finance reported that Loretta Mester, the 2026 FOMC voting member and President of the Cleveland Federal Reserve, stated on Thursday that persistently high inflation levels are unfavorable for the Federal Reserve to cut rates again, and she is concerned that monetary policy may not be adequately prepared to address current inflation. Mester said, "After last week's policy meeting, I believe monetary policy is barely restrictive, and in my view, there is currently no clear reason to take further policy action." Mester noted that the Federal Reserve continues to face inflationary pressures above its target, and the current monetary policy stance has almost no restraining effect on economic growth momentum. She opposed the Fed's decision to cut rates last week. Mester acknowledged there are issues in the labor market, but also warned that the unemployment rate remains low.