NEWARK, Del.—The president of the Federal Reserve Bank of Cleveland said Tuesday that interest rates will likely rise slightly this year, assuming the economy grows at the healthy clip she anticipates.

“If the economy performs along the lines that I’ve outlined as most likely, the fed-funds rate may need to move a bit higher than current levels,” said Cleveland Fed President Loretta Mester in a speech at the University of Delaware, referring to the central bank’s benchmark policy rate.