An ally of Federal Reserve chair Janet Yellen, a longtime sceptic of raising interest rates, has signalled that the Fed should be in no hurry to act, especially after a bleak US jobs report was released earlier in the day.
Fed board member Lael Brainard on Friday said that other recent economic developments have also muddied the picture of the US economy.
And she pointed to additional risks, including possible market turmoil if Britain votes later this month to leave the European Union.
Speaking to the Council on Foreign Relations, Brainard said she thought there was still "an advantage to waiting until developments provide greater confidence" before raising rates.
The Fed next meets June 14-15.
Brainard's remarks on Friday could be a preview of a speech Yellen will give on Monday outlining her own views on the economy and rates.
Speaking at Harvard a week ago, Yellen said she believed an interest rate hike would be appropriate in coming months if the economy kept improving.
She said in response to a question that she expected the Fed to gradually raise its key rate, "and probably in the coming months, such a move would be appropriate."
Share
