Federal Reserve Bank of Kansas City President Esther George said in an interview with FOX Business Network on Thursday that the Fed should be careful making its interest rate decision.

"Given what we've seen recently, I think we just have to wait and see. I don't want to take too much signal from something that could turn out to be noise. I don't want to overreact to short-term data that may not in the long term really turn out to be significant for that kind of a decision," she said.

George noted that it's important to understand this week's stock market volatility.

Federal Reserve Bank of Kansas City president pointed out that the normalization process should begin.

"So after a disappointing first quarter, it looks like we're back on track. We'll probably do another two percent growth. The labour markets continue to show great health, I think. We've had over 200,000 jobs per month for 15 of the last 17 months. That is great sign, I think. And so as consumers spend, as they gain more confidence, as low oil prices seed through to them, my outlook is for continued growth. And I think in that context, it's time for us to talk about normalization," George said.

George is not a voting member of the Federal Open Market Committee this year.