Richmond Fed President Jeffrey Lacker said in a speech on Thursday that the U.S. inflation is likely to return to 2% target over the near term.

"After the price of oil bottoms out, I would expect to see headline inflation move significantly higher. And after the value of the dollar ultimately tops out, core inflation should move back toward 2 percent," he said.

Lacker noted that the Fed should continue to hike its interest rate.

"While there is uncertainty about the pace at which monetary policy rates will rise, the case for an upward adjustment in rates should be clear," Richmond Fed president said.

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