Cleveland Fed President Loretta Mester hinted in an interview with CNBC on Thursday that an interest rate hike by the Fed is possible soon.

"Things are on track," she said.

Mester noted that the U.S. labour market is near or reached full employment, while inflation is moving toward the 2% target.

Cleveland Fed president pointed out that terrorist attacks are unlikely to have a negative impact on the outlook of the U.S. economy.