Federal Reserve Governor Miki Bowman on Friday said a number of important inflation risks remain and the Fed should not yet lower the fed funds rate target range to prevent from overshooting.

"My baseline outlook is that inflation will decline further with the policy rate held at the current level," she said in prepared remarks for an unscheduled speech.

"Should the incoming data continue to indicate that inflation is moving sustainably toward our 2% goal, it will eventually become appropriate to gradually lower our policy rate to prevent monetary policy from becoming overly restrictive. In my view, we are not yet at that point." Bowman voted alongside her FOMC colleagues earlier this week to maintain the Fed's policy rate at its current level of 5.25% to 5.5%. (See: MNI INTERVIEW: Ex-Fed's Lockhart Sees No Rush To Cut In 1H)

Some notable upside inflation risks remain, she said, noting geopolitical conditions, easier financial conditions and continued labor market tightness.

"Today’s labor market data, which indicated a pickup in wage inflation in recent months, suggests ongoing elevated wage growth as some businesses continue to report above-average wage increases to compensate for inflation," she said.

Bowman will be watching upcoming inflation reports closely, especially inflation data revisions next week.

"It is important to note that monetary policy is not on a preset course," she told the Southwestern Graduate School of Banking. "While the current stance of monetary policy appears to be sufficiently restrictive to bring inflation down to 2% over time, I remain willing to raise the federal funds rate at a future meeting should the incoming data indicate that progress on inflation has stalled or reversed."