A possible rate hike in December may be enough to bring U.S rates to a neutral setting. That's the words of Federal Reserve policymaker James Bullard Wednesday.

Financial markets expect the Fed to raise rates next month and have begun pricing in bold rate increases after the elections. Bullard also said the jump in the U.S. dollar and government bond yields since last week's election remained within the range of the past year.

He points out that rising inflation expectations had eased some of the Fed's concerns. Bullard is considered one of the Fed policymakers more likely to back rate hikes.

But he stressed that while rates would go up it doesn't mean the era of low global rates would suddenly end.