Measured rate rises appropriate says Fed's Stern

"We've been pretty clear about saying policy has been accommodative for a significant period of time, and we intend to reduce that accommodation in a measured way. And for my nickel, that is the course that is appropriate to be on at the moment," Stern said on CNBC Television.

"June was obviously a month that was softer, but the economy tends to bounce around a bit and I wouldn't over-emphasize the June situation," Stern said.

Stern, who is not a voting member of the Fed's policy committee this year, said the economy was on track for solid growth, and still low inflation.

"I expect growth to continue at probably four-percent-plus going forward, and that will be accompanied by further gains in employment and by inflation that will look low in almost any almost historical context I can think of."

"The economy underneath it all is quite flexible and resilient and I don't think it will be thrown off course by modest rate changes," Stern said.