The Federal Reserve should be cautious in considering an interest rate hike due to economic risks. That's the word from New York Fed President William Dudley.

Dudley says it would be premature to rule out a policy tightening this year but uncertainty inside and outside the US could make the central bank lead toward no rate changes until December.

Dudley didn't mention how many rate hikes he was expecting but said the Fed should move more aggressively than just one rate hike by the end of next year.