Federal Reserve policymaker Jim Bullard argued on Wednesday that the United States economy turned out to be stronger compared to what the Fed and markets previously thought. Speaking for CNBC, Bullard noted that the Fed will likely have to push rates past 5% in order to tame inflation. The rates should peak at 5.375%, he estimated, insisting that the Fed should slow the pace of rate hikes only once it has hit the terminal rate. Turning to the labor market, Bullard stressed that the latest tech layoffs haven’t impaired the economy. However, the St. Louis Fed president asserted inflation could go down even with the strong employment numbers. The US economy will see a “moderately slow growth” in 2023 with inflation declining, he concluded.