New York Fed President William Dudley said on Thursday that the interest rate hike in December will depend on the incoming economic data.

"I think it is quite possible that the conditions the Committee has established to begin to normalize monetary policy could soon be satisfied. In particular, I will be evaluating the incoming information to see if it confirms my expectation that growth will be sufficient to further tighten the U.S. labour market," he said.

Dudley added that the interest rate hikes will be gradual once the Fed starts raising its interest rate.

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