Federal Reserve policymakers signal no rush to raise U.S. rates

Thu Jul 14, 2016 9:01pm EDT
 
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By Ann Saphir

ST. LOUIS (Reuters) - Three Federal Reserve policymakers on Thursday expressed the view that there was no hurry to raise U.S. interest rates in the wake of the UK decision to leave the European Union, despite signs that the U.S. economy is near full employment.

Ahead of the next Fed policy meeting on July 26-27, a core group are now happy to keep interest rates unchanged, potentially for months, whereas just last month, most Fed officials signaled they expected to raise rates at least twice this year.

St. Louis Fed President James Bullard, speaking with reporters in St. Louis on Thursday, repeated his position that only a single rate rise is needed for the next couple of years unless some unexpected shock moves the economy to a better or worse state.

"In the aftermath of Brexit people want to wait and see and I'm happy to go with that for now," said Bullard, a voting member of the U.S. central bank's rate-setting committee. "There’s really no rush."

Dallas Fed President Robert Kaplan, also in St. Louis, renewed his call for a "patient, gradual" approach to raising rates.

And earlier on Thursday Atlanta Fed President Dennis Lockhart, at the Global Interdependence Center's Rocky Mountain Economic Summit, said that he wants to be "cautious and patient."

BREXIT VOTE IMPACT UNCERTAIN   Continued...

 
The Federal Reserve headquarters in Washington September 16 2015.  REUTERS/Kevin Lamarque