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Several Federal Reserve officials, both privately and publicly, are pushing back against calls by St. Louis Fed President Jim Bullard on Thursday for super-sized rate hikes, and instead suggesting the central bank is likely to embark initially on a more measured path.

The comments of these officials suggest markets may have wrongly interpreted Bullard’s remarks as being more widely held than they are by Fed officials and leadership.

Atlanta Fed President Raphael Bostic told CNBC on Thursday after the inflation report, “My views have not changed” for three or four rate hikes this year, likely beginning with a 25 basis point increase. That was the same view he gave CNBC on Wednesday before the inflation report. (One basis point equals 0.01%.)

After the report showed the consumer price index rose 7.5% year over year, a fresh 40-year high, Bullard told Bloomberg he wanted to see 100 basis points of tightening “in the bag” by July, including the possibility of a 50 basis point rate hike and even potentially an intermeeting move.

Stocks, which had actually shrugged off the inflation report, sold off sharply in the wake of Bullard’s comments and bond yields soared. The 25 basis point move in the 2-year yield was the largest one-day increase since the global financial crisis in 2009. Markets priced in near certainty of a 50 basis point hike in March, even though Bullard himself said he was undecided about such a move.

Later that day, Richmond Fed President Tom Barkin said in a speech that “I’d have to be convinced” of the need for a 50 basis point rate hike, saying there may be a time for that, but it did not appear to be now.

San Francisco Fed President Mary Daly said after the inflation report that a 50-basis-point hike is “not my preference.”

CNBC reporting found that several Fed officials were already looking for a bad inflation number and the January report was not substantially worse than expected. Improvement is not expected until midyear 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 about five weeks before the March meeting, including another inflation report, and the situation could change. But key officials, even after the inflation data, continue to hold to an outlook for measured tightening.

President Joe Biden on Thursday touted wage growth and forecasts for tapering inflation even after a new report showed that prices are still rising at their fastest clip in 40 years.

“While today’s report is elevated, forecasters continue to project inflation easing substantially by the end of 2022,” Biden said in a press release. “And fortunately we saw positive real wage growth last month, and moderation in auto prices, which have made up about a quarter of headline inflation over the last year.”

“We will continue to fight for costs in areas that have held back families and working people for decades, from prescription drugs to child care and elder care to their energy costs,” he added.

The president’s remarks came about two hours after the Labor Department reported that prices facing U.S. consumers rose 7.5% in the 12 months through January, the hottest annualized pace since 1982. Excluding volatile gas and grocery costs, the CPI increased 6%, compared with the estimate of 5.9%. Core inflation rose at its fastest level since August 1982.

Inflation has over the past several months evolved into one of the administration’s chief economic problems as rising prices at the gas pump and at the grocery store chip away at Americans’ wallets. Without proportional wage increases, inflation erodes consumers’ purchasing power and leaves households with lower real incomes.

The White House has limited powers at its disposal to curb price increases, including tapping the strategic petroleum reserve, shoring up U.S. supply chains and encouraging workers to return to work as soon as possible.

While investments in American infrastructure supported by the Biden administration may work to lower prices in the long term, the White House doesn’t have many options to check prices in the near term. Instead, Biden and Treasury Secretary Janet Yellen have in recent weeks said they agree with the Federal Reserve’s likely move to tighten monetary policy and raise interest rates to keep inflation at bay.

The Fed is empowered by Congress to adjust interest rates to maximize employment and stabilize prices. If the central bank views the economy as too hot, it can raise borrowing costs across the economy to curb spending.

Market forecasters are virtually certain the Fed will hike rates at its March meeting and continue to do so throughout 2022.

“The Federal Reserve provided extraordinary support during the crisis for the previous year and a half,” Biden said on Jan. 19. “Given the strength of our economy and pace of recent price increases, it’s appropriate — as Fed Chairman Powell has indicated — to recalibrate the support that is now necessary.”

Yellen echoed her boss’s thoughts a day later.

“I expect inflation throughout much of the year – 12-month changes – to remain above 2%,” she said at the time. “But if we’re successful in controlling the pandemic, I expect inflation to diminish over the course of the year and hopefully revert to normal levels by the end of the year around 2%.”

Consumer prices surged more than expected over the past 12 months, indicating a worsening outlook for inflation and cementing the likelihood of substantial interest rate hikes this year.

The consumer price index for January, which measures the costs of dozens of everyday consumer goods, rose 7.5% compared with a year ago, the Labor Department reported Thursday.

That compared with Dow Jones estimates of 7.2% for the closely watched inflation gauge. It was the highest reading since February 1982.

Stripping out volatile gas and grocery costs, the CPI increased 6%, compared with the estimate of 5.9%. Core inflation rose at its fastest level since August 1982.

The monthly CPI rates also came in hotter than expected, with headline and core CPI both rising 0.6%, compared with the estimates for a 0.4% increase by both measures.

Stock market futures declined following the report, with rate-sensitive tech stocks hit especially hard. Government bond yields rose sharply, with the benchmark 10-year Treasury note touching 2%, its highest since August 2019.

Markets also got more aggressive in pricing rate hikes ahead.

The chances of a 0.5 percentage point Fed rate increase in March rose to 44.3% following the data release, compared with 25% just before, according to CME data. Chances of a sixth quarter-percentage point hike this year rose to about 63%, compared with about 53% before the release.

“With another surprise jump in inflation in January, markets continue to be concerned about an aggressive Fed,” said Barry Gilbert, asset allocation strategist at LPL Financial. “While things may start getting better from here, market anxiety about potential Fed overtightening won’t go away until there are clear signs inflation is coming under control.”

The inflation numbers come at a crossroads for the U.S. economy, with 2021’s rapid growth pace expected to slow this year as fiscal and monetary stimulus fades. Growth is still expected to be above trend, though sharper rate increases from an inflation-fighting Fed could prove troublesome.

On a percentage basis, fuel oil rose the most in January, surging 9.5% as part of a 46.5% year-over-year increase. Energy costs overall were up 0.9% for the month and 27% on the year.

Vehicle costs, which have been one of the biggest inflation contributors since they began surging higher in the spring of 2021, were flat for new models and up 1.5% for used cars and trucks in January. The two categories have posted respective increases of 12.2% and 40.5% over the past 12 months.

Shelter costs, which make up about one-third of the total CPI number, increased 0.3% on the month, which is the smallest gain since August 2021 and slightly below December’s rise. Still, the category is up 4.4% over the past year and could keep inflation readings elevated in the future.

Food costs jumped 0.9% for the month and are up 7% over the past year.

That combination of higher food and housing prices “underlines our view that a rapid cyclical acceleration in inflation is underway and, with labor market conditions exceptionally tight, it is unlikely to abate any time soon,” wrote Andrew Hunter, senior U.S. economist at Capital Economics.

“While we still expect more favorable base effects and a partial easing of supply shortages to push core inflation lower this year, this suggests it will remain well above the Fed’s target for some time,” he added.

The burst in inflation has muted the sizeable earnings growth workers have seen. Real average hourly earnings rose just 0.1% for the month, as the 0.7% monthly gain in wages was almost completely wiped out by the 0.6% inflation gain.

A separate report Thursday showed that weekly jobless claims totaled 223,000 for the week ended Feb. 5, a decline of 16,000 from the previous week and below the 230,000 estimate. It was the lowest total since Jan. 1.

Continuing claims, which run a week behind, held at 1.62 million. The total of those receiving benefits under all programs rose slightly to about 2.1 million, according to Labor Department data through Jan. 22.