New York Fed President William Dudley said in prepared remarks on Thursday that the monetary policy was more effective if the central bank's actions were transparent for the public.

"Market participants and households both understand and can anticipate actions by the central bank. By doing so, the transmission channels of monetary policy are enhanced," he said.

Dudley pointed out that the monetary policy was data-depended.

"It is, therefore, important for market participants and households to be able to follow the data along with the FOMC and to understand how we are likely to interpret and react to incoming data," New York Fed president said.

"If people know more about how the economy is performing and how that is likely to influence our actions, this should make it easier for us to achieve our twin objectives [maximum sustainable employment and price stability]," he added.

Dudley is a voting member of the Federal Open Market Committee (FOMC).