Several Fed officials, both privately and publicly, are pushing back against calls by Fed's Bullard for 50bps rate hike

• Instead, CNBC says it suggests that the central bank is likely to embark initially on a more measured path.


• CNBC says several officials were already looking for a bad inflation number, and the January report was not substantially worse than expected. 


• Inflation improvement is not expected until mid-year and only then, if it remains high and rising and does not respond to rate hikes and plans for balance sheet reduction, would these officials want to accelerate the pace of tightening.


• There are still five weeks before the meeting, including another inflation report, and the situation could change. But key officials, even after the inflation report, continue to hold to an outlook for measured tightening.

via CNBC

Analysis details (13:26)

• Note: We have seen articles from BBG, WSJ now CNBC playing down the idea of a bigger rate move, or even inter-meeting moves, following Bullard's remarks yesterday.


• Bloomberg claimed that despite the hot CPI, the FOMC does not yet favour a 50bps rate hike or even making any emergency policy moves outside of a scheduled meeting (next one is scheduled for March 16th). It adds that such moves would risk signalling panic and cementing criticism that the Fed is behind the curve on inflation; it would also involve bringing forward the conclusion of the Fed’s asset purchases, which could exacerbate the potential shock among unprepared market participants.

11 Feb 2022 - 13:24- Fixed IncomeData- Source: CNBC