(Bloomberg) -- Federal Reserve Bank of Atlanta President Raphael Bostic said he’s leaning toward supporting a smaller interest-rate hike at the Fed’s next meeting following Thursday’s report showing a further slowing in inflation.

“This report was really welcome news,” Bostic said in an interview Thursday evening with CBS News. “It really suggests that inflation is moderating and it gives me some comfort that we might be able to move more slowly now that we are in restrictive territory.”

Fed officials, who meet Jan. 31-Feb. 1, are mulling a further moderation in the pace of rate hikes following a slowing in US inflation. Consumer prices rose 6.5% in the 12 months through December, marking the slowest inflation rate in more than a year, Labor Department data showed.

“If the information I get from business leaders and others is consistent with that, and the first signals we are getting is they are, I’ll be comfortable moving at a slower rate, even 25 basis points, relative to what you saw us do through 2022,” said Bostic, who does not vote on monetary policy this year.

Fed officials lifted rates by a half-point last month to a target range of 4.25% to 4.5%, slowing the pace of rate increases after four straight 75 basis-point moves. Fed officials see interest rates rising above 5% this year and staying there until 2024, according to projections released by policymakers last month.

Philadelphia Fed President Patrick Harker, speaking Thursday morning shortly after the Labor Department’s release of consumer price data, said rate hikes of a quarter-percentage point “will be appropriate going forward.” Harker’s comments echoed remarks a day earlier from Susan Collins, his counterpart at the Boston Fed.

Investors hardened bets on a 25 basis point hike following the release of the data, according to pricing in futures contracts.

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