Federal Reserve Governor Michelle Bowman on Thursday said she supported last month's interest-rate cut as the "final step" in the U.S. central bank's monetary policy recalibration, with rising inflation risks dictating a cautious approach ahead.

Despite the progress that has been made, there are "upside risks to inflation," Bowman added. The Fed's preferred inflation gauge showed a rate of 2.4% in November but was at 2.8% when excluding food and energy, a core measure that officials see as a better long-run indicator.

At least four Federal Reserve officials are speaking Thursday, including Federal Reserve Bank of Boston President Susan Collins, Philadelphia Fed President Patrick Harker, Richmond Fed President Thomas Barkin,