The prospects of a Federal Reserve interest rate rise this month receded further yesterday after a senior policymaker set out a series of arguments for not rushing into an increase.
Amid fevered speculation about the US central bank’s policy meeting next week, which on Friday helped trigger the worst bout of market turmoil since the Brexit vote, Lael Brainard called for caution on rates. She cited doggedly below-target inflation, risks from overseas and a limited arsenal to counter future economic setbacks.
The comments by Ms Brainard, a dovish Fed governor and permanent member of the Federal Open Market Committee, will make it harder for Fed hawks to seal the case for an increase in rates as soon as September 21.