The latest warning that the Fed is more likely going to increase interest rates from New York Federal Reserve President William Dudley.

In a report by CNN, Dudley at the Economic Club of New York on Thursday said, "It is quite possible that the conditions the committee has established to begin to normalize monetary policy could soon be satisfied," The possibility for a rate hike is strengthened after the strong jobs figures reported last Friday. This means, if the economy keeps moving forward, the Fed is more likely going to increase its benchmark interest rates from almost zero level for the first time since 2006.

In an interview with Bloomberg TD Securities' Priya Misra said the Fed needs to get a few hikes done before they can sort of wait. To see an impact on the market, it would be best ot get a few hikes done, because a 1.25 basis point, for example, realy doesn't mean a lot. However, if the hike is 1 percent on the funds rate, then they can evaluate the data and determine how the economy is handling the higher interest rate. 

"I think they at least want to be able to get a few hikes done," she said. "The market is extremely pesimistic because we are living in an uncertain world We've seen US growth kind of picking up but still not extremely robust. The rest of the world is certinly weak. So I can see why the market is pesimistic, but we're pricing in two hikes. I think the feds going to want at least get a few (hikes) done before they can sort of wait."  

According to The Wall Street Journal, Dudley said monetary policy decisions are hard when the economy steadily grows when inflation is weaker than what the Federal Reserve requires. Despite this, Dudley still suggests the time to increase the rates is getting closer as the economic conditions that central bankers want could soon be achieved. He said he will look closely at the incoming information to determine if the growth is enough to "further tighten the US labor market."

The global slowdown seems to be less of a concern for the Feds as officials are more optimistic for a rate hike. Dudley's expectation for an increase in interest rates is very important, since he is one of the most influential voices in the Fed. Even investors are optimistic that the Fed will finally raise rates above almost zero level by December.