Federal Reserve Bank of Minneapolis President Neel Kashkari said in an interview with CNBC on Wednesday that developments abroad also caused low interest rates.

"It's also economic conditions around the world that are causing interest rates to be low and necessitating low interest rates," he said.

Federal Reserve Bank of Minneapolis president noted that further interest rate hikes will depend on the incoming economic data.

Kashkari pointed out that the slowdown in the Chinese economy could have an impact on the U.S. economy.

"It leads to great market upheaval and one of the transmission mechanisms from China to the U.S. are obviously risk premiums, obviously volatility in the markets. Even If our trade linkages may be moderate, if risk premiums go up all around the world, that could have an effect on our economy too," he said.