The New York Federal Reserve President William Dudley said on Friday that the interest rate by the Fed later this year is appropriate despite the slow economic growth in the second quarter.

He expects the U.S. economy to pick up and the inflation in the U.S. to move back to the Fed's 2% target.

The New York Federal Reserve president pointed out that the timing of the interest rate hike will depend on the economic data.

Dudley is a voting member of the Federal Open Market Committee this year.