Speaking in an interview with CNBC, Minneapolis Federal Reserve President Gary Stern (voter) said the outlook on core and headline inflation has improved.

Stern commented that the current drop in energy prices has alleviated inflation concerns. He added that it would be "some time before we see some growth in the economy." When asked whether the U.S. economy was in a recession, he answered that "a declaration would be a close call."

Stern noted that core inflation was reasonably "well-behaved" and that credit headwinds may increase. When speaking about the U.S. dollar, Stern said exports have benefited from the low dollar.

Stern added that in the midst of turbulence, you must deal with the matters at hand. He reiterated the need for patience for recovery and the importance of strengthening the financial infrastructure.

By Steve Stecyk and edited by Sarah Sussman