Federal Reserve Bank of New York President William Dudley said that the Fed will remain careful in raising interest rates.
"Monetary policy adjustments are likely to be gradual and cautious, as we continue to face significant uncertainties and the headwinds to growth from the financial crisis have not fully abated," Dudley said at the New York Fed Conference on Monday, according to Dow Jones.
Dow Jones reported that Dudley was generally optimistic about the U.S. economy, citing "mostly favorable" news such as strong jobs numbers and lowered debt. However he also said that it will take some time to bring inflation back up to the Fed's target of 2 percent.
Dudley said that the economic outlook for Europe is improving, but low inflation levels continue to be an issue in the region, Dow Jones reported.