New York Fed President John Williams endorsed the stance in the central bank's recent statement that it should gather more information at this point to evaluate the risks facing prices.
Speaking Friday at a European Central Bank event in Frankfurt, Williams said inflation is "far too high," although other indicators have so far not sent worrying signals.
Monetary policy "does play a critical role in making sure these relative price shocks don't morph into broader or more persistent inflation," Williams said. "Inflation expectations remain well anchored. We are seeing wage growth consistent with our 2% inflation target."
Fed officials held rates steady last month and said that "accumulating more information" would help determine the appropriate level of policy. The Federal Open Market Committee voted 10-2 to stand pat, after unanimously agreeing in September to raise rates by 25 basis points, lifting the benchmark target range to 3.75%-4%. Since that last meeting, several policymakers have said further rate increases remain necessary but have advocated a gradual approach.
Fed Chair Kevin Warsh also previously pointed to the strength of the U.S. economy and warned that inflation is persistent, while still not revealing his own view on the rate outlook.
"I think the statement from our last FOMC meeting accurately reflects the current situation: now is the appropriate time to accumulate more information to help us determine the appropriate policy stance and ensure inflation returns to our 2% target in a timely way," Williams said.
The personal consumption expenditures (PCE) price index, the inflation gauge favored by the Fed, rose 3.6% year-over-year in September, and the core measure excluding food and energy also climbed. Data showed the U.S. economy grew at its fastest pace in a year in the quarter through September.
"There are a couple of themes that are very much worth paying attention to, both for us and for the rest of the world: on the one hand, a series of very unusual relative price shocks are hitting economies; on the other hand, at least the U.S. economy has continued to show strong resilience in the face of these shocks," Williams said.
Williams' remarks came days after Democrats scored a decisive victory in Tuesday's U.S. midterm elections and won control of Congress. Fed watchers believe this political shift could help protect the central bank, giving officials more room to fight inflation with less political interference.
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