Federal Reserve officials are expressing concerns about the current economic conditions and the trajectory of inflation. Fed Governor Michelle Bowman emphasized that inflation will decline with the policy rate held steady, but she expects only modest progress on lowering inflation this year. Bowman also highlighted concerns about the decline in the number of U.S. banks and the lack of new bank creation, which she believes will create financial issues. Atlanta Fed President Raphael Bostic noted that inflation remains a chief concern and that businesses do not foresee a significant downturn in the job market, which remains tight by historical standards. Bostic also mentioned that service businesses are experiencing eroding pricing power. Richmond Fed President Thomas Barkin remarked that the U.S. economy is withstanding the Fed's battle on inflation, but policy tightening will eventually slow the economy further. Barkin added that real-time consumer demand indicators like credit card spending remain solid, although companies have cut back on hiring and firing. He also noted the remarkable strength of the economy despite ongoing rate hikes.