St. Louis Federal Reserve Bank (FRB) Chairman James Ballard urged his colleagues at the U.S. Federal Reserve (Fed) to raise interest rates to 3.5 percent this year to slow the pace of inflation near a four-decade high. He noted, however, that the rate could be lowered again late next year or in 2024.

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

Ballard noted that at the end of 2019, before the coronavirus pandemic, the Fed’s key rate was at 1.55%, the yield on 10-year US Treasuries was at 1.86% and mortgage rates were below 4%.

“These values can serve as a benchmark to which rates will be held when US inflation is brought under control,” he said during an online speech at the Economic Club of Memphis.

Ballard, who has been the most vocal among Fed officials this year in favor of tightening monetary policy, supports regulator head Jerome Powell’s plan to raise rates by 50 basis points at the next two meetings.

He told reporters after the speech that he also expects another rate hike in the same increment in September if incoming statistics are in line with current expectations. “I think we have a good plan at this point,” Ballard said.

The Fed raised its benchmark interest rate by 50 basis points at the end of its May meeting, with the rate range now ranging from 0.75% to 1% per annum. The Fed is expected to raise the rate at the same pace for at least two upcoming meetings.