Philadelphia Fed President Patrick Harker said "we may be at the point where we can be patient."
Policymakers are poised to lift rates by a quarter point following a two-day policy meeting Wednesday.
The Fed held policy rates steady last month, signaling a slower pace for rate moves to evaluate how the economy responds.
Data released Tuesday pointed to an economy that is exceeding expectations and proving resilient to monetary policy.
The decision left the benchmark federal funds rate in a target range of 5% to 5.25%.
New research and commentary from officials and economists suggest the link between wages and prices may not be so direct.
Investors bet the Fed will hold fire at its June 13-14 meeting as policymakers assess the impact of higher rates.
The proportion of banks tightening terms on loans for medium and large businesses rose to 46%.
Some Fed officials believe that more rate hikes are warranted to combat inflation, while others call for "prudence."
Emergency borrowing retreated for the third straight week.
Please log back in before proceeding.
There was an error logging in. Please try again.
Congrats! You are now logged in. Your exam is being submitted.
