Mary Daly, San Francisco Fed President, said Sunday that the Federal Reserve must be careful in raising interest rates.

“It’s obvious that we must remove some of our economic flexibility. However, history has shown that Fed policy can have an adverse effect on growth and price stability. Daly spoke on CBS’ Face The Nation.

Daly stated, “The important thing is not to measure in your pace, but be data-dependent.”

The Fed has begun to reduce the amount of pandemic-era assets it purchases, and is preparing to increase interest rates to counter inflation. U.S. consumer price Index grew 7.5% over the past year in January, the fastest pace since 1982.

Market participants are expecting the central bank’s March policy meeting to announce its first rate increase.

“What I would favor is moving in March and then watching, measuring, being very careful about what we see ahead of us — and then taking the next interest rate increase when it seems the best place to do that. Daly stated that it might be at the next meeting, or even a far away.

Daly’s comments come after St. Louis Fed President James Bullard on Thursday calledTo raise interest rates by 1 percentage point before July 1, causing a steep jump in bond yields.

For the Fed’s annual rate hike, expectations are high. Some economists anticipate the Fed will hike interest rates by a half-point in March. Other economists such as those at Goldman Sachs are also included. see as many as seven quarter-point hikes for this year.

Daly claimed that “it is too early to know” the Fed’s plans for this year’s rate increases.

We have additional print on the inflation, employment and jobs report. Daly said that these are all very important.

Continued geopolitical tensions at the Russia-Ukraine borderDaly also noted that uncertainty is another aspect of the U.S. economic system.

San Francisco Fed president John F. Kennedy stated that financial markets “already priced” asset sales and had also “priced in rates increases in the future year”.

Daly explained that markets and households, as well as all of my business contacts that I talk to frequently, understand that Fed policy is being followed and that adjustments are made so it’s right-sized.

In the weeks ahead, market participants will pay more attention to Fed appearances. Bullard is scheduled for Monday’s interview on CNBC’s “The Market.”Squawk Box.”

Minutes from Wednesday’s last Fed meeting are also available. Investors are looking for new information on the Fed’s plans to raise rates, its inflation outlook and comments about its balance sheet.