THE Federal Reserve's policy rate continues to act as a brake on the resilient labor market and on inflation that is still above the 2-percent target, two US central bankers said on Tuesday, a view that appears to argue for more interest rate cuts, even as both signaled they were not ready to judge how fast or by how much.

'In my judgment, we are still in a modestly contractionary stance, but ultimately the economy will guide us, in terms of how far we are needing to go' in cutting the Fed's benchmark for short-term borrowing costs, Minneapolis Fed President Neel Kashkari said at a Yahoo Finance event.