San Francisco Fed President John Williams said in Singapore on Tuesday that inflation in the U.S. would reach the Fed's 2% target over the next two years. He noted that inflation could reach 2% target sooner.

"Recent developments have been very encouraging and add to my confidence that we're on course to reach our goal," San Francisco Fed president noted.

Williams pointed out that the Fed should continue to raise its interest rate.

"My view is essentially, let's just stay on track. Let's not get side-lined by the noise and distraction commentary can sometimes cause," he said.

Williams is not a voting member of the Federal Open Market Committee (FOMC) this year.