Investing.com -- The President of the San Francisco Federal Reserve Bank, Mary Daly, on Tuesday advised that the central bank should take a cautious approach to adjusting interest rates due to the strength of the economy and uncertainties surrounding the new policies of the Trump administration.

Daly, speaking at Brigham Young University in Provo, Utah, expressed that the economy’s robust health and current policy stability have provided the central bank with the opportunity to proceed slowly and carefully.

Daly indicated that the hard economic data shows that growth and the labor market remain strong. However, she expressed a slight concern about potential temporary inflation increases due to tariffs. She did not elaborate further on this point.

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