Inflation in the United States may have peaked in March and may now begin to decline, but the Federal Reserve (Fed) should still undertake a series of key rate hikes, according to Christopher Waller, a member of the Board of Governors of the Fed.

U.S. consumer prices soared at an annualized rate of 8.5% in March, the fastest pace since December 1981. But prices excluding food and energy costs rose 0.3% last month from February, the slowest pace in six months, after rising 0.5% a month earlier.

“My prediction is that this was the peak, and now inflation will start to come down,” Waller told CNBC. He believes that rising interest rates in the market have already started to affect demand, while oil prices have retreated from record highs reached in early March.

However, inflation is still too high and the regulator needs to keep raising the rate to bring consumer price growth under control, Waller added, noting that he still favors a 50 basis point increase in the federal funds rate at the Fed’s May meeting.

Waller also allowed for the possibility of 50 bps rate hikes in June and July.

The Fed raised the benchmark interest rate at its March 15-16 meeting by 25 basis points, now the rate range is from 0.25% to 0.5% per annum. As the Fed’s management forecast showed, FOMC members expect six more rate hikes during 2022, up to 1.875%.