Richmond Fed President Jeffrey Lacker explained on Friday why he voted for an interest rate hike at the Fed's latest monetary policy meeting. He pointed out that "the steady growth in output and household spending" justify higher interest rates.

"I dissented because I believe that an increase in our interest rate target is needed, given current economic conditions and the medium-term outlook," Lacker said in a statement.

"My assessment was also supported by labor markets that had tightened considerably and my confidence that inflation will return to our 2 percent objective after the temporary effects of low energy and import prices have passed," he added.