NY Fed chief expects rate hike mid-2015

New York Federal Reserve President William Dudley says he expects the central bank to raise interest rates in the middle of 2015.

"Market expectations that lift-off will occur around mid-2015 seem reasonable to me, although that could change depending on how the economy evolves," Dudley said in prepared remarks given at Baruch College in New York on Monday.

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Federal Reserve officials are easing off their bond-buying program, which they implemented to stimulate the economy after the 2008 collapse.

They've kept interest rates at zero, however, and many market-watchers are speculating over when they will raise the rates. Some warn the economy isn't healthy enough to consider raising interest rates.

Dudley said that raising rates would be a good sign for the economy and downplayed any trouble for financial markets.

"While raising interest rates is often portrayed as a difficult task for central bankers, in fact, given the events since the onset of the financial crisis, it would be a development to be truly excited about," he said.

"This would indicate that the U.S. economy is finally getting healthier. ... That would be very good news, even if it were to cause a bump or two in financial markets."