New York Fed President William C. Dudley said in Zurich in Tuesday that he does not know when the Fed will start to hike its interest rates. He noted that when the interest rate hike by the Fed will have impact on global capital flows, foreign exchange valuation and financial asset prices. But Dudley added that market participants should be prepared for the interest rate hike if they monitor incoming data.

The New York Fed president also said that important emerging-market economies could be hurt by higher U.S. interest rates.

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