Investing.com -- This week's sell-off in U.S. Treasuries showed that the Federal Reserve needs to reinforce its inflation-fighting credibility by raising interest rates, St. Louis Fed President Alberto Musalem told the Financial Times. "At this juncture, earlier, incremental, gradual interest-rate action is preferable, less costly and less disruptive than potentially later, larger and abrupt actions," Musalem said. The Fed left its benchmark interest rate unchanged, as widely expected, opting to monitor incoming economic and inflation data before making its next move. Traders placed a 67% probability on the Fed raising rates by 25 basis points in September, according to CME Group's FedWatch tool. Related articlesTreasury sell-off shows Fed must reinforce inflation credibility, Musalem saysCiti pushes back Fed rate cuts to May after blowout January jobs reportNvidia's new Alpamayo project: What it means for Tesla?