Following the release of US inflation data, several Federal Reserve (Fed) policymakers began to give their views on the next interest rate hike.
These statements from the three policymakers may be used as clues for investors ahead of the FOMC's policy meeting on February 2.
Richmond Fed President Tom Barkin
Inflation data has moved in the right direction and allowed the Fed to take more planned steps.
Remain cautious even though the average inflation has decreased but the median remains high.
In rate setting, Barkin advocates a slower but longer and potentially higher path.
Philadelphia Fed President Patrick Harker
Bad inflation and aggressive rate hikes are over.
An increase of 25 basis points is appropriate for the future.
Expect the key rate to reach just over 5%.
Inflation is expected to moderate to 3.5% in 2023, returning to the 2% target in 2025.
Atlanta Fed President Raphael Bostic
The latest data provides little comfort for the Fed to move more slowly.
Could raise 25 basis points if talks with businesses are consistent with slower inflation.
Along with the changes in the current data, the Fed policy makers started to change the 'tone' in their stance in the next policy setting.
However, these three comments do not reflect that all Fed policymakers have similar thoughts or views.
Now, the market is starting to place expectations for a 25 basis point hike at the next meeting.
