Federal Reserve (Fed) Board of Governors member Dr. Adriana Kugler noted on Tuesday that while inflationary pressures have certainly eased, the Fed still needs some pieces to the rate cut puzzle before movement on rates can occur.

Key highlights

If incoming data does not provide confidence that inflation is moving toward the 2% target, it may be appropriate to hold rates steady a little longer.

If the labor market cools too much, it will be appropriate to cut interest rates sooner rather than later.

Upside risks to inflation, downside risks to employment have become more balanced.

It will be appropriate to begin easing monetary policy later this year if economic conditions continue to evolve favorably.

Continued labor market rebalancing suggests inflation will continue to move toward 2% target.

The labor market has seen substantial rebalancing.

Supply and demand are gradually coming into better balance.

Inflation remains above the US central bank's target