Federal Reserve Bank of New York President William Dudley said on Thursday that the Fed should raise its interest rates this year if growth, employment and inflation will meet their targets.

"If the economy performs in line with my forecast, I would favour lifting off later this year. But it's a forecast. It's not a commitment," he said.

Dudley added that the recent U.S. economic data pointed to the slower growth in the U.S. economy. But he noted that he sees that the U.S. economy expands above trend.

"When I put it all together, I still see an economy that's growing a bit above trend. And if that is the case, we should see greater pressure over time on resources. And if that is the case, then we should be able to begin to normalize monetary policy," Federal Reserve Bank of New York president said.