June 26 (Reuters) - St. Louis Federal Reserve Bank President James Bullard on Thursday said he has penciled in U.S. inflation of 2.4 percent by the end of 2015, a forecast that he said is probably higher than that of any of his Fed colleagues.
But in an interview on Fox Business Network, Bullard expressed some comfort with that increase, saying that the Fed cannot exactly target inflation, which will sometimes will run a bit higher than the U.S. central bank’s 2-percent goal.
Over the long run, he said, U.S. economic growth is likely to be just over 2 percent, lower than historical norms but higher than some of his colleagues have recently suggested.
Interest rates over the next seven to 10 years will rise back to historical norms of 4 percent to 4.5 percent, but over the shorter term rates will not get that high, he said.
Reporting by Ann Saphir; Editing by Chizu Nomiyama