In an interview with The Wall Street Journal, Dudley said he expects the U.S. central bank's next interest rate hike this year.
"I think if the economy continues to evolve along the path we expect, I'd expect we'll be raising interest rates relatively soon," Dudley told the newspaper.
The New York Fed president also told the Journal that the yield on the 10-year Treasury note seems a little low given the current conditions in the economy. Following his comments, the yield on the U.S. 10-year Treasury note hit a session high of 1.805 percent, its highest level since June 3 when it yielded as high as 1.813 percent.
The yield on the benchmark 10-year Treasury note last sat higher at around 1.7988 percent at 4:13 p.m., ET, while the yield on the 30-year Treasury bond was also up at 2.5604 percent. Bond yields move inversely to prices.
Yellen said that it is helpful to consider the benefits of a "high-pressure economy" at the Federal Reserve Bank of Boston's 60th economic conference, which is titled "The Elusive 'Great' Recovery: Causes and Implications for Future Business Cycle Dynamics".
She pointed out that the economy has seen an unusual tendency of weak demand against strong supply, making it reasonable "to ask whether it might be possible to reverse these adverse supply-side effects by temporarily running a 'high-pressure economy,' with robust aggregate demand and a tight labor market."
Earlier on Friday, the Index of Consumer Sentiment hit 87.9 in October's final reading, according to the University of Michigan, hitting its lowest since Sept. 2015.
Economists expected the Index of Consumer Sentiment to hit 92 in October, up from 89.8 in September's final reading, according to Thomson Reuters consensus estimates.
In other economic news, September retail sales came in at 0.6 percent, in line with expectations, while producer prices came in above expectations.
The topic of the U.S. Federal Reserve has been put back on the table this week, after the Federal Open Market Committee released its latest set of minutes from its September meeting on Wednesday.
While the central bank didn't raise interest rates last month, members who were in favor on hiking rates believed that waiting too long, could push the U.S. into a recession.
Aside from Yellen, Boston Fed President Eric Rosengren spoke with CNBC, saying his views haven't changed, but economic conditions have.
Elsewhere on Friday, oil prices slipped, after trading higher earlier following a fall in U.S. fuel inventories. U.S. West Texas Intermediate crude settled down 9 cents at $50.35 a barrel.
No auctions are set to take place by the U.S. Treasury on Friday.
— CNBC's Jeff Cox contributed to this report.