The U.S. isn't headed for the kind of "stagflation" that developed in the 1970s, when unemployment and inflation rose in tandem, Federal Reserve Vice Chair Richard Clarida said.

"I actually lived through, as a college student, the 'Great Stagflation' of the '70s, and I think there are a lot of differences," Clarida said Tuesday while answering questions after a virtual speech at the 2021 Institute of International Finance Annual Membership Meeting. "First and foremost, the 1970s were a decade of pretty substantial policy mistakes, in monetary policy. And I think central bankers learned their lesson, and I would not see a repeat of those policy mistakes."

U.S. inflation, as measured by the Fed's preferred gauge, was 4.3 percent in the 12 months through August, well above the central bank's 2 percent target.