Several Fed officials released hawkish signals, focusing on the US CPI in the evening.

FOMC permanent vote committee, New York Fed President Williams said that GDP growth in 2022 is expected to be around 2%, and inflation will be close to the 2% target in 2024. He said raising rates by 50 basis points at the next two meetings makes sense and promised the Fed would move quickly this year to return the federal funds rate to a more normal level.

The 2022 FOMC vote, Cleveland Fed President Mester believes that interest rates will need to be raised beyond the neutral rate, which is 2.5%, and unemployment may have to rise to bring down inflation. Cleveland Fed President Mester is leaning toward a 50-bps rate hike, but she would support a larger rate hike if inflation doesn't ease in the second half of the year. She said a 75bps rate hike will never be ruled out.

Federal Reserve Governor Waller said that the Fed's interest rate hike will ease demand and curb inflation, and he supports raising interest rates ahead of time because the economy can bear it. He said that former Fed Chairman Volcker had to scare people with rate hikes because the Fed lacked credibility at the time; but this is not a time to scare people.

Markets expect the Fed to tighten tightening to fight inflation, which last week raised interest rates to 1 percent. On Tuesday, Fed officials continued to reiterate that they would aggressively slow inflation at the fastest pace in 40 years. The President of the United States also said the day before the April CPI report was released, “I know that families across the United States are hurt by inflation, and I want to let every American know that I am taking inflation very seriously, and it is our domestic priority.”

U.S. CPI data for April will be released later in the day, and investors will need to pay close attention to whether inflation has peaked to assess the Fed's future policy outlook. Analysts expect the CPI to cool but remain above 8%. The Core Consumer Price Index (CPI) is a measure of the prices of consumer goods and services other than food and energy. CPI measures price changes from a consumer's perspective. It is an important measure of changes in U.S. buying trends and inflation.