(Reuters) – U.S. business are not experiencing any difficulties raising prices on their customers for the first year in years, St. Louis Federal Reserve Bank President James Bullard announced on Monday. Bullard warned that inflation will likely remain high as higher expectations continue to grow.

Bullard spoke at an International Economic Forum of the Americas conference. He said that Bullard’s contacts from the Fed in Bullard’s district, as well as other business people in the US “typically state that my company will be profitable due to the fact I’m going to increase prices. And we have had no trouble raising prices in such an environment,”

Bullard, who is a strong advocate for the U.S. central banking’s aggressive measures to counter higher-than expected inflation, sees only two rate increases in 2022. The interest rate is close to zero, which they are at since the COVID-19 pandemic started in the early 2020s.

“I worry about changing mindsets around price and relative freedom for businesses to just simply pass higher costs on to customers. Bullard said that this has not been true for many years.