Federal Reserve Bank of New York President William Dudley believes the Fed's median forecast for three rate hikes in 2017 is a "reasonable" plan. Dudley was speaking on Bloomberg Television Friday morning.

The Fed increased its benchmark rate a quarter point at its March meeting, the second hike in three months.

"Where the FOMC is, I think is in a reasonable place," Dudley told Bloomberg reporter Mike McKee. Dudley has an upbeat view on the U.S. economy.