Register now for FREE unlimited access to Reuters.com RegisterThat was a notable contrast with the previous report from late summer that had concluded most Fed contacts then had "expected price pressures to persist at least through the end of the year." The view that inflation was moderating was accompanied by concerns over the economic cost of the Fed's rate hikes aimed at bringing those price pressures to heel: Demand was generally seen as softening. While underlying price pressures for goods have eased as supply chains heal, those of services, which tend to be stickier, continue to rise rapidly. Such signs could usher in a slower pace of rate hikes that Fed Chair Jerome Powell has said will come "at some point." "Auto dealers reported flat or decreasing sales, noting that consumers had become wary of higher payments because of increased interest rates and higher vehicle prices," the Cleveland Fed reported.

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