By Howard Schneider

(Reuters) – Atlanta Federal Reserve President Raphael Bostic on Monday said he expects the U.S. central bank will need to deliver two or three more half-percentage-point interest rate hikes but nothing bigger to bring high inflation down, noting that he already sees signs of supply pressures peaking.

Bostic said that a rate increase of 75 basis points is unlikely given the events in the economy. He spoke to Reuters via Twitter (NYSE Spaces).

He said that trucking companies no longer turn down business as in the past and that shipping bottlenecks have been easing.

Bostic indicated that there are still unknown downsides to Ukraine’s war on demand. He also said that households may react to inflation by possibly cutting back their spending.

Bostic indicated that he was open to “the possibility” that these adjustments would work with policy moves and bring us to inflation approaching the policy… target faster than my colleagues project. “In such a case, we don’t have to do nearly so much.”

Last week, the Fed raised its overnight lending target of bank-to-bank by half a point to 0.75-1%.

Fed Chair Jerome Powell stated that two additional rate increases are possible at the U.S. central banks’ upcoming policy meetings. This is as U.S. policmakers attempt to curb an inflationary trend at its 40-year peak.

Bostic stated, “That’s quite aggressive by historical standards.” I’m optimistic that they will be able to take the reins of inflation and bring it closer to the target.