A relatively tight labour market in the United States may put upward pressure on inflation, raising the case for higher interest rates, St. Louis Federal Reserve President James Bullard said on Monday.
The comments come as financial markets have increased expectations for a U.S. interest rate hike in June or July and a range of policymakers are now stating that a rise is firmly on the table for the next policy meeting in June.
"Labor markets are relatively tight. This may put upward pressure on inflation going forward," Bullard, a voting member of the Fed's policy-setting committee, said in Beijing.
"This is an important factor supporting the FOMC view on the expected path of the policy rate," he said.