Cleveland Fed President Loretta Mester said in an interview on Thursday that the Fed should continue to hike its interest rate gradually as there was no deterioration in the U.S. economy.

"My forecasts, and the risks around those forecasts, suggest we still want to see gradually rising interest rates," she said.

Mester is a voting member on the Federal Open Market Committee (FOMC) this year.

Cleveland Fed president pointed out that an interest rate hike in March is possible, saying "march should be on the table".