Federal Reserve officials reinforced Chair Jerome Powell's message that half-point interest rate increases are on the table in June and July, but a larger move of 75 basis points (bps) could be warranted later in the year.

"We don't rule out 75 forever," Cleveland Fed President Loretta Mester said in an interview Tuesday on Bloomberg Television with Michael McKee. "When we get to that point in the second half of the year, if we don't have inflation moving down, we may have to speed up."

Stocks retreated on her remarks to Bloomberg, with the S&P 500 erasing its advance after climbing almost 2 percent.

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