"It feels like rates will have to stay higher for longer than markets had expected," Chicago Federal Reserve Bank President Austan Goolsbee told CNBC on Monday. 

Key takeaways

"Risk of inflation staying higher is still the bigger risk."

"Current path is Unusual for inflation to fall like it is without unemployment rising."

"Fed should have 100% commitment to returning inflation to 2%; the target will not change."

"One view is that monetary policy takes a long time to work through the economy."

"At some point, the question shifts from how high to raise rates to how long they will stay there."

Market reaction

The US Dollar Index continued to edge higher after these comments and was last seen rising 0.17% on the day at 105.76.