"It now appears the balance of risks on inflation and unemployment have shifted," St. Louis Federal Reserve President Alberto Musalem said on Thursday and added: "The time may be nearing when an adjustment to moderately restrictive policy may be appropriate."

Key takeaways

"Monetary policy is moderately restrictive."

"Absent further shocks, inflation seems to have returned back to path consistent with 2% over time."

"Services and shelter inflation remain a little sticky."

"More disinflation work to do."

"Labor market is no longer overheated."

"Signs of labor market cooling, but layoffs remain low."

"Recent data have bolstered my confidence on inflation."

"Risks to both sides seem more balanced."