Fed president expects inflation to persist through to 2024

Inflation will likely persist into 2024, St. Louis Federal Reserve President James Bullard warned on Tuesday, suggesting interest rates could likely surge even higher as the Fed battles rising prices.

"I think we'll probably have to stay there all during 2023 and into 2024," Bullard told MarketWatch of high interest rates, estimating they could reach between 5 and 7 percent.

Bullard pointed to low unemployment numbers and indicated the jobs market's strength would enable the Fed to tackle inflation head on through more rate hikes.

"The fact that the labor market is so strong gives us license to pursue our disinflationary strategy now and try to get the inflation under control now. So we don't replay the 1970s, where the FOMC at that time took 15 years to get inflation under control," he said.

Inflation stood at 7.7% as of October, down from a 9.1% high in June. The Federal Reserve rose interest rates by 0.75% earlier this month, for the fourth time this year. Current lending rates range from 3.75% to an even 4%. 

Minutes from the Federal Open Market Committee implied the Fed may yet raise interest rates by another 75 basis points at its December meeting, The Hill reported.