Dallas Fed President Robert Kaplan said in a speech on Monday that it was the right decision to hike interest rates in December, adding that further interest rate hikes should be gradual and depend on the incoming economic data.

"I agree with, and argued for, the decision made in December by the FOMC to increase the federal funds rate … Future removals of accommodation will likely be done gradually and will depend on our ongoing assessment of incoming economic data and overall economic conditions," he said.

Kaplan pointed out that the slowdown in the Chinese economy could have a negative impact on the U.S. economy.

"Slower Chinese growth has the potential to further impact commodity prices and create headwinds for GDP growth in the U.S. and other economies," Dallas Fed president noted.