Fed must hike rates sooner or risks falling behind the curve, says Bullard

St Louis Federal Reserve president, James Bullard, said the Fed should not delay its decision to hike interest rates for much longer as it risks falling behind the curve.

Bullard, who isn't a Federal Open Market Committee voter this year, described the European Central Bank's planned bond-buying programme as an "unmitigated good" for the US economy, which would benefit from lower long term borrowing costs and cheaper fuel.

Earlier this week, the Fed reiterated its stance over interest rates, saying it would continue to adopt a patient approach for the foreseeable future

"If I were going to play it strategically I'd rather get off zero sooner and then have more flexibility to go slower and react to data," Bullard told Bloomberg TV.

He added that if the Fed procrastinates its rate hike, "we will have to move more aggressively at that point - instead of 25 points go 50 basis points, and that kind of dynamic is not a good one."