Federal Reserve Bank of Cleveland President Loretta Mester said in Reykjavik on Monday that the "time is near" for the interest rate hike by the Fed.

"If the data comes in according to my forecasts then the time is near where we're going to be wanting to raise rates," she noted.

Mester pointed out that the interest rate hike is possible on every monetary policy meeting.

Federal Reserve Bank of Cleveland president also said that a longer period of low interest rates may pose risks to financial stability.

Mester is not a voting member of the Federal Open Market Committee this year.