"No one is happy when inflation is running at 4% or 5% when our goal is 2%," Clarida said during a conversation with Cleveland Fed President Loretta Mester. "This is not a success, this year, and I wouldn't consider a repeat next year of inflation at this level a success."
Several Fed officials, including Fed chair Jerome Powell, have said inflation is likely to persist for longer than they initially expected. Policymakers will discuss in December whether it might be appropriate to end their bond purchases a few months earlier than they are currently on pace for, Powell said during a Senate hearing earlier on Tuesday.
Clarida, who did not comment on the Fed's taper plans on Tuesday, said the central bank has met its inflation target and noted that bringing down inflation will be key to keeping inflation expectations anchored. He said the Fed will also need to achieve its maximum employment mandate before raising interest rates.
(Reporting by Jonnelle Marte; Editing by Chizu Nomiyama)