By Gina Lee

Investing.com – Asia Pacific stocks were mostly down on Thursday morning, with the fastest U.S. inflation print in over three decades fueling expectations that the U.S. Federal Reserve will hike interest rates as early as March 2022.

Japan’s fell 0.96% by 9:03 PM ET (2:03 AM GMT). South Korea’s inched down 0.07%, with the handing down its policy decision on Friday.

In Australia, the gained 0.43% and Hong Kong’s was up 0.24%.

China’s inched down 0.02% and the was down 0.23%.

U.S. stocks, including those of the and the, ended Wednesday on a high note. According to data released in the U.S., the core consumer price indicator (CPI), grew 0.6% in December and 5.5% in January. CPI rose 7% and 0.5% respectively, which is the highest rate since 1982.

In its , the Fed said that the U.S. economy grew at a modest pace in the final weeks of 2021, but businesses’ expectations for growth over the next several months have cooled in some places.

Jerome Powell, Fed chairman, pledged that the Fed would curb inflation but not undo economic recovery from COVID-19.

The Fed St. Louis president told Wall Street Journal four rate hikes may be justifiable in 2022 due to high inflation. Separately, Raphael Bostic (atlanta Fed) and Loretta Mester (Fed Bank of Cleveland) endorsed interest rate increases as early as March 2022.

Later in the day, other Fed officials will be speaking, such as Thomas Barkin (Richmond Fed President), Patrick Harker (Philadelphia Fed President) and Charles Evans (Chicago Fed President). John Williams, President of the New York Fed, will address Friday.

Investors continue to be concerned about inflation.

“Inflation is going to be with us no matter if they increase rates and the challenges of the economy here are just going to build on that,” Strategic Wealth Partners chief market strategist Shana Sissel told Bloomberg.

“I am concerned that there is going to be quite a bit of volatility in the market and our economy is going to slow down considerably.”

The U.S. Senate Banking Committee Hearing for Lael Mindard, Fed vice chair nominee, will be held later today. Investors also eagerly await U.S..