Atlanta Federal Reserve President Raphael Bostic told CNBC on Wednesday he is hopeful that they will start to see a decline in inflation, as reported by Reuters.

Additional takeaways

"Projecting 3% PCE inflation for the year."

"Leaning toward the need for a fourth interest rate increase in 2022."

"Would like to see the balance sheet reduced pretty significantly and for reductions to start soon."

"Fed decisions and signals sent this year will go a long way to address inflation."

"Thinking only about 25 bps hikes right now though, all options on the table."

"Seeing US growth comfortably through 2022 and 2023; much would have to happen for Fed policy to constrain growth."

Market reaction

The US Dollar Index stays under modest bearish pressure following these comments and was last seen losing 0.15% on the day at 95.48.