REFILE-Fed's Lacker: Lower inflation expectations needed

(Refiles to add words "inflation expectations" in 4th paragraph)

NEW YORK, May 22 (Reuters) - Core inflation is now hovering around 2.25 percent and it would be difficult for it to fall below 2 percent unless inflation expectations are reined in further, Richmond Federal Reserve Bank President Jeffrey Lacker said on Tuesday

Clear communications by the central bank could bring inflation expectations down, he said.

"Without a prompt fall in inflation expectations, a reduction in inflation below 2 percent is likely to be temporary and hard to sustain," he said in remarks prepared for delivery to the Money Marketeers of New York University. A copy of his speech was made available in advance.

Using interest rates alone would be difficult and time-consuming, he said, adding: "One natural approach to bringing inflation expectations down more expeditiously, should that be the desire, would be a strategy of clear communications about policy-makers' intentions," he said.

Lacker dissented four times last year in favor of another rate hike to curb inflation as the central bank kept rates steady since last June. He is not a voting member of the Fed's rate-setting committee this year.