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WASHINGTON, Sept. 8 (Xinhua) -- Given the "cross currents" in the economy and markets, It is too early to predict when Federal Reserve should raise interest rates, William Dudley, President of Federal Reserve Bank of New York said on Friday.

"It's too soon to judge exactly the timing of when the next rate hike might occur, but the path is still clear that short term rates are going to move higher," said Dudley, one of the central bank's key decision-makers, on CNBC TV.

The fed is facing with contradictory economic signals. The above-trend economic growth suggests the need to raise interest rates, while low inflation rate suggests it is better to wait.

Fed officials were divided over the pace of rate hikes amid sustained low inflation, according to the minutes of Fed's July policy meeting released last month.

In June, the central bank raised the benchmark interest rates for the fourth time since December 2015 and unveiled a plan to trim its massive holdings of U.S. Treasury bonds and other mortgage-backed securities later this year.

The Fed will hold its next policy meeting on Sept. 19-20. Most economists expect the Fed to begin shrinking its balance sheet in September, with a further rate hike in December, according to the latest survey conducted by the Wall Street Journal.