Raphael Bostic, the president of the Atlantic Federal Reserve Bank, said he does not expect any interest-rate cuts this year because he does not see inflation going down as fast as market participants believe, and if anything "we may have to go up".

There is still a long way to go to bring inflation down to the Fed's 2% goal, Bostic told CNBC, though there has been progress.

"If there is going to be a bias to action, for me there would be a bias to increase a little further, as opposed to cut," Bostic said.

(Reporting by Ann Saphir, editing by Ed Osmond)