St. Louis Fed President James Bullard said on Tuesday that the Fed should start raising its interest rates.

"Prudent monetary policy suggests gradually edging the policy settings closer to normal, since the goals have been met and policy would still remain very accommodative," he said.

Bullard pointed out that the U.S. economy remains supported even if the Fed will start raising its interest rates.

"Policy will remain exceptionally accommodative even as normalization proceeds, because policy settings are far from anything that could be called restrictive," St. Louis Fed president said.

He also said that he expects the unemployment rate in the U.S. to decline "into the 4% range", while inflation will rise.