United States Federal Reserve Bank of San Francisco President Mary Daly underlined on Tuesday that there is “no urgency” to modify the Fed funds rate, stressing the “real risk” of implementing rate cuts prematurely.

The Fed official noted that the US economy is “improving” and added that while three rate cuts could be considered “reasonable” for this year, the conditions for such actions have not yet been met.

Daly clarified that the anticipation of three rate cuts by the year’s end was not a firm “promise,” pointing out the importance of policymakers being ready in case inflation proved to be “stickier” than projected, which could in turn affect the central bank’s monetary policy.