Federal Reserve Governor Michelle Bowman Saturday said she expects that additional rate "increases" will likely be needed to get inflation on a path down to the central bank's 2 percent target, adding that she will be looking for signs of slowing in consumer spending and signs that labor market conditions are loosening.

"It's important to reiterate that monetary policy is not on a preset course," she said at an event in Colorado sponsored by the Kansas Bankers Association. "My colleagues and I will make our decisions based on the incoming data and its implications for the economic outlook. We should remain willing to raise the federal funds rate at a future meeting if the incoming data indicate that progress on inflation has stalled."

(See: MNI INTERVIEW: US Disinflation In Train But Economy Overheated)

While lower June inflation readings are a "positive sign," the economy and the labor market have remained strong as the FOMC has tightened monetary policy, Bowman said. The pace of job gains has slowed, which is a sign that labor market demand and supply are coming into better balance but the demand for workers continues to exceed the supply of available job seekers, adding upward pressure on prices, she added.