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Fed looks unlikely to hike next week

She said the U.S. labour market was not at full strength yet

Policy Pulse
Publish Date: Sep 13 2016 12:07PM | Updated Date: Sep 13 2016 12:07PM

Fed looks unlikely to hike next week

Governor Lael Brainard has said that Federal Reserve should avoid removing support for the U.S. economy too quickly.

 
Brainard said she hoped to see better trend in U.S. consumer spending and evidence of growing  inflation before the Fed raises rates, and that the United States still looked susceptible to economic weakness abroad. 
 
"Today's new normal counsel’s prudence in the removal of policy accommodation," Brainard, one of six permanent voters on the Fed's rate-setting committee, told the Chicago Council on Global Affairs.
 
She said the U.S. labour market was not at full strength yet, which means "the case to tighten policy preemptively is less compelling."
 
Brainard did not said anything n the specific timing of future rate policy changes but she held firm in arguing for caution in what could be the last word from a Fed policymaker before the central bank's Sept. 20-21 meeting.