Despite calls for larger action, the Fed is likely to continue with a cautious approach to rate hikes.

St. Louis Fed President Jim Bullard's call for super-sized rate hikes is being opposed by several Federal Reserve officials, both privately and publicly, who believe the central bank should take a more measured approach.

Officials' comments suggest that markets may have misinterpreted Bullard's remarks as widely held by Fed officials and leadership.

Atlanta Fed President Raphael Bostic stated on CNBC on Thursday that his stance on three or four rate hikes this year, possibly starting with a 25 basis point increase, has not changed. This was the same view he expressed on Wednesday before the inflation report. One basis point equals 0.01%.

Bullard stated to Bloomberg that he aims to achieve 100 basis points of tightening by July, which may include a 50 basis point rate hike and an intermeeting move, following the report that revealed the consumer price index increased by 7.5% year over year, reaching a new 40-year high.

In the aftermath of Bullard's comments and the 25 basis point increase in the 2-year yield, which was the largest one-day increase since the global financial crisis in 2009, markets anticipated a near certainty of a 50 basis point hike in March, despite Bullard's own uncertainty about such a move.

In a speech, Tom Barkin, President of the Richmond Fed, stated that he would need to be convinced of the necessity for a 50 basis point rate hike, indicating that there may be a time for it, but it did not seem to be the case at the moment.

After the inflation report, Mary Daly, San Francisco Fed President, stated that a 50-basis-point hike is not her preferred choice.

According to CNBC reporting, several Fed officials are waiting for a bad inflation number, and the January report was not as bad as expected. Improvement is not expected until midyear, and only if inflation remains high and does not respond to rate hikes and plans for balance sheet reduction would these officials accelerate the pace of tightening.

Despite the upcoming inflation report and the possibility of changes in the situation, key officials remain committed to a gradual tightening of monetary policy.