The Fed will continue raising rates to at least 4% come 'hell or high water,' former Fed vice chair says

Richard Clarida, a former Fed Vice Chair, said that the Fed will raise rates to 4% or higher.

He told CNBC on Friday that "failure is not an option" because of the central bank's determination to get prices under control.

Clarida said that the only question is how high rates will go and how long they will stay there.

If I had to put it in two boxes, I think they would be 4% hell or high water. They're going to 4% because of their dependence on data. It's too high.

Central bankers are expected to approve another 0.75 point increase in the fed funds rate at their meeting on September 20-21.

It will take some time and requires using our tools forcefully to bring demand and supply into better balance, Powell said on Thursday.

Clarida said that the Fed will have a single mandate until inflation comes down.

It's very hard to achieve and sustain maximum employment if you lose price stability. The data says that inflation is too high. I believe they are going to 4%.