WASHINGTON, (Reuters) – The U.S. will likely continue to grow at an above-trend rate for the next at least 18 months. Households are expected to keep spending even as the effects of the pandemic diminish, James Bullard, president St. Louis Fed, said Tuesday.

Bullard claimed that growth between 2.5% and 3% is “fast in comparison to the long-term potential rate of growth” (which may be slightly below 2%), in remarks that seemed to downplay any recession risk from Fed tighter monetary policy.

“That’s exactly where we are… U.S. labor markets have been super strong…Households are expected to continue this year.”

Bullard stated that people “want the pandemic to be over and that they have many plans for spending,” during comments at an energy investor conference.

Retail sales increased faster than anticipated in April, with March’s revision higher. This shows that U.S. consumers are able to absorb the effects of high inflation for the first time in over 40 years and show no sign of reducing their spending in light of rising interest rates.

Bullard indicated that Fed officials intend to keep raising the federal funds rate at half the pace in future meetings. This is a great plan to lower inflation, and the Fed believes it can be done with the least disruption possible.