Cleveland Fed President Loretta Mester said in a speech on Wednesday that the Fed should continue to hike its interest rate gradually this year.

"In my view, it will be appropriate for monetary policymakers to continue to gradually reduce the level of accommodation this year," she said.

Mester pointed out that she expected more gradual policy path than in December as she downgraded her growth forecasts.

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