The U.S. economy will continue to grow through 2022 despite high inflation and rising interest rates, Federal Reserve Bank of St. Louis (FRB) Chairman James Ballard said.

“In terms of GDP growth, I believe the indicators point to continued growth in the coming quarters,” Ballard said, speaking at an event in Barcelona, adding that based on the current situation, we can expect growth through the end of 2022.

He noted the very strong labor market in the United States, but also pointed to the risks of high inflation and rising inflation expectations, MarketWatch wrote.

The Fed raised the benchmark interest rate at the end of the June meeting by 75 basis points and may implement a similar increase in July. The current rate range is 1.5% to 1.75% per annum.

Ballard this year is a voting member of the Federal Open Market Committee (FOMC), which determines the range of the key rate.