Fed's Bullard, Explaining Dissent, Says Rates Should Top 3 Percent This Year

St. Louis Federal Reserve president James Bullard on Friday called for a dramatic increase in the Fed's overnight lending rate to more than 3% this year, a step he feels is needed to catch up with inflation posing a "particularly heavy" burden on families.

In a released statement explaining his dissent against the Fed's approval of a quarter point increase this week, Bullard said the Fed "will have to move quickly to address this situation or risk losing credibility on its inflation target."

He said he not only favored a half point increase this week, but rate increases at a pace that would require half point increases at most of the Fed's remaining meetings this year.