Federal Reserve Governor Daniel Tarullo said in an interview with Bloomberg TV on Monday that he is worried about the low inflation in the U.S.

"The U.S. economy seems still to be chugging along with modestly above-trend growth. We've certainly seen continued improvement in the labor market, but the environment for inflation is still one where there is still a lot of uncertainty," he said.

Tarullo noted that market participants were focussed more on particular month, when the Fed will start raising its interest rate, than on the pace of interest rate hikes.