Federal Reserve (Fed) policymaker James Bullard says the central bank is lagging behind in its efforts to fight inflation and needs to raise interest rates significantly.
Bullard, who is also one of the Fed’s hawkish policymakers told that the central bank should raise rates to about 3.5% by the end of the year.
The rise described was faster than that proposed by Bullar at the March FOMC policy meeting, which saw interest rates reach 3.25% by the end of the year.
The minutes of the March edition of the meeting also showed most policymakers were ready for an increase of 50 basis points at each upcoming policy meeting.
The next US central bank will meet on May 3-4, and an increase of 50 basis points during the session is widely expected.
Inflation data to be released next week is expected to show consumer prices in March continue to rise sharply, with a projected rise of around 8% or higher amid a spike in petrol prices due to the outbreak of war in Ukraine.
Separately, meanwhile, policymakers Charles Evans and Raphael Bostic urged caution over the central bank's move to shift towards a more rapid neutral monetary policy.
