By Jonnelle Marte, Howard Schneider and Ann Saphir

(Reuters) – Federal Reserve policymakers have stated that they will raise interest rates in March, but were cautious on Monday regarding what could follow. This indicates a willingness to remain open in light of uncertain inflation prospects and a continuing pandemic.

The four Fed officials sounding like they were singing a tune, said that it was now time for the U.S. central banking to end support to an economy growing rapidly and in which inflation has reached its highest level in over 40 years.

Wall Street analysts had predicted five to six, or seven, interest-rate increases this year. But the Wall Street analysts were wrong. The four refused to outline the policy plan that market participants have grown to expect after recent tightening cycles.

In a short phone interview, Mary Daly from San Francisco Fed stated that “we definitely are ready for a march increase.” “But then, I want the data to show me… let us get past Omicron. Let’s take a look at this.

CNBC’s Thomas Barkin, Richmond Fed President, stated that he would prefer us to be more positioned. “Better placed is somewhere closer towards neutral, certain, than we’re now, and I believe the pace at which that happens just depends upon the rate of inflation.”

Jerome Powell, Fed Chair, stated last week that Powell and his fellow central bankers are “of the mind” to increase interest rates at their March 15-16 meetings as they continue to reduce economic support.

The central bank’s portfolio of nearly $9 trillion is expected to be reduced by policymakers later in the year. This balance sheet doubled when the Fed bought Treasury securities and mortgagebacked securities. It was created to support markets and foster recovery from the effects of the coronavirus epidemic.

The U.S. government says it no longer requires the same level support. They need to deal with high inflation, which is a sign that demand exceeds supply. They are uncertain about how to get rid of that accommodation quickly, as they don’t know how inflation will respond.

Barkin stated that “we know that the supply chain problems for goods will ease over time,” which should lead to lower prices. However, Barkin said that prices will rise because of rising wages and pressure on the supply side.

The picture is further complicated by U.S. economy growth slowing at the beginning of the year. This after the country’s fastest ever annual rate since 1984.

Raphael Bostic, Atlanta Fed president, stated to Yahoo Finance that “we are going to have to be thinking very carefully about what is going on and how the economy reacts to our initial moves.” We aren’t aiming for any one particular path. Data will show us the current situation.

The economic report is mixed. The end of last-year saw inflation expectations remain broadly stable, although some extreme price pressures have perhaps begun to ease.

However, the pace of labor market recovery may have slowed in January. Reuters polled economists to find that the U.S. added a median 153,000 jobs last January. This is the lowest number in a single year. About 10% believe the economy has lost jobs during the month.

Esther George, Kansas City Fed president said that the virus has made it more difficult for Fed officials provide the same guidance as in the past.

George spoke at an event sponsored by The Economic Club of Indiana, saying that it was not in the best interests of anyone to cause economic disruptions with unanticipated adjustments. “I believe the Federal Reserve will have to take deliberate steps to remove accommodation.”