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.