Federal Reserve officials are considering the potential for interest rate cuts, contingent on inflation trends. Chicago Fed President Goolsby indicated that if inflation continues to approach the 2% target, there could be room for rate reductions this year. However, he cautioned that persistent service sector inflation poses a challenge. Goolsby also mentioned that if tariff-related price hikes are temporary, it might allow for policy adjustments. Meanwhile, San Francisco Fed President Daly emphasized the need to curb inflation, suggesting that while artificial intelligence could assist, the Fed's moderate or slightly restrictive policies remain essential. In contrast, Fed Governor Michael Barr maintained a more hawkish stance, suggesting that due to ongoing inflation risks, a rate cut might not occur soon. Barr also highlighted the stabilization of the job market, as confirmed by recent data.