St. Louis Fed President James Bullard said in a speech on Friday that the U.S. inflation will reach 2% target by the end of 2016.

"Let's suppose that oil prices stabilize at the current level and stay around that level for several years. Let's further suppose that all other prices continue to increase at the same pace as they have during 2015 so far. Under such a scenario, the headline consumer price index inflation rate at the end of 2016 would be more than 2%," he said.

Bullard also said that the probability of a hard landing in China is low now, and that the U.S. labour market "largely normalized".