Investing.com -- San Francisco Federal Reserve President Mary Daly said Wednesday that the U.S. economy remains fundamentally strong despite uncertainty and volatility stemming from the Iran war.

Speaking to the St. George Area Chamber of Commerce in Utah, Daly noted that consumers continue to spend and businesses are still investing. She acknowledged concerns about potential inflation pressures and labor market stability but said the Fed is not seeing evidence of deterioration.

"There's a concern that maybe this will push inflation up: that's our job, we'll focus on that. And there's a concern that maybe the labor market isn't as solid, but we're not seeing that, we're seeing it kind of settle at a good place," Daly said.

The Fed official added that it remains too early to determine how long oil prices will stay elevated. She emphasized the importance of the central bank maintaining a steady approach rather than reacting to short-term market movements or news cycles.

"Important that Fed doesn't move around as much as news, or markets, do," Daly stated, adding that "no one likes uncertainty or volatility."