federal reserve Officials on Thursday reportedly expressed relief that inflation continued its downward path in December, which could likely lead to a decline to a 25 basis point rate hike at FOMC meeting in early February.

The consumer price index rose 6.5% in December, compared with 7.1% in November, according to data from the work department. Core inflation, which excludes volatile food and energy prices, rose 5.7% in December. in line with average economist estimates.

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Major Wall Street indices closed in the green on Thursday. the SPDR S&P 500 ETF Trust SPY closed 0.36% higher during the Invesco QQQ Trust Series 1 QQQ gained 0.54%. Here’s how some central bank officials reacted to the data:

• Federal Reserve of Richmond president Tom Barkins said: “We are slowing down the economy and with it probably also inflation. That means…I can be a bit more nuanced,” according to a Reuters report. Barkin said he supports “in concept a path that is slower but longer and potentially higher” depending on how inflation behaves.
• Philly Fed president Patrick Harker said in a speech that hikes of 25 basis points are reasonable going forward. “My expectation is that … will be so hawkish that we will keep interest rates on hold to allow monetary policy to do its job,” he said, according to the Reuters report.
• St. Louis Federal Institution president James Bullard said at an event organized by Wisconsin Bankers Association that “it is encouraging that we received some information today that went in the right direction.”
• Atlanta Fed president Raphael Bostik told CBS News that December’s inflation data was “welcome news.” “It really suggests that inflation is slowing down and that gives me some comfort that we may be able to slow down,” he said, according to the report.

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