Atlanta Fed President Raphael Bostic said on Wednesday that the baseline scenario right now includes a 75 basis points (bps) rate hike in November and a 50 bps increase in December, as reported by Reuters.

Additional takeaways

"Inflation is too high and not moving with enough speed back to target."

"Lack of progress means Fed will need to be moderately restrictive with rates in the 4.25% to 4.5% range by year's end."

"Supply-side improvements have not come in as fast as expected."

"Watching international events but feels like the US has considerable momentum, less susceptible to contagion."

"Some evidence of improvement on the demand side but it is preliminary."

"No evidence of dysfunction in Treasury market at this point."

"Beyond the housing market, signs of cooling demand include businesses reporting a steep decline in consumer discretionary purchases, easier hiring."

"Below trend growth, more rational labor markets, weak demand for a wider range of products would be signals of weakening inflation."

"Rents levelling off would be a really positive development for Fed."

"I do not believe a US recession is a foregone conclusion, expecting the unemployment rate to increase to only 4.1%."

Market reaction

The US Dollar Index showed no immediate reaction to these comments and was last seen losing 0.1% on the day at 114.07.