Monetary policy

The Federal Reserve is expected to pause at its September meeting. Jeff Timlin, a managing partner at Sage Advisory, will join us on Sept. 21 to provide analysis of the meeting.

Daly said the neutral interest rate — also known as R-star — may be higher now than it was before the pandemic

Despite recent improvements, "inflation remains well above the FOMC's 2% target. Domestic spending has continued at a strong pace, and the labor market remains tight," Bowman said Wednesday.

"The inflation rate is still too high, the level of inflation remains high, but at least we're seeing progress on it," Mester said Friday during an interview with CNN International.

"If we continue to see a cooling labor market and inflation heading back to our target, we can hold interest rates steady and let the effects of policy continue to work," Daly said.

With the Federal Open Market Committee expected to skip an interest rate hike, all eyes turn to the Summary of Economic Projections and Chair Powell's remarks.

"Although inflation has moved down from its peak — a welcome development — it remains too high," Powell said in the text of a speech Friday at the U.S. central bank's annual conference in Jackson Hole, Wyoming.

Federal Reserve Bank of Richmond President Thomas Barkin said the greater-than-expected easing in inflation in June may be an indication that the U.S. economy can have a "soft landing," returning to price stability without a damaging recession.

After July's hike, analysts are mixed on whether the Federal Open Market Committee is done raising rates.

"I haven't made up my mind for what should happen in September," Goolsbee said.