August 8, 2016 / 8:22 AM / in a year

Fed's Powell urges patience on U.S. rates, citing growth risks

LONDON (Reuters) - The U.S. economy is at increasing risk of becoming trapped in a prolonged phase of slow growth that points to the need for lower interest rates than previously expected, Federal Reserve policymaker Jerome Powell was quoted as saying.

Jerome Powell delivers remarks during a conference at the Brookings Institution in Washington August 3, 2015. REUTERS/Carlos Barria

Powell, a member of the Federal Reserve Board of Governors, told the Financial Times he favored a “very gradual” path for any rises as U.S. economic outlook was dogged by global risks.

“The probability of an era of weaker growth, lower potential growth - that worries me more than it used to,” he was quoted as saying in Monday’s edition of the newspaper.

“With inflation below target, I think we can be patient.”

Powell spoke on Thursday, the day before strong U.S. nonfarm payrolls numbers for July led to markets ramping up bets on a U.S. rate rise this year.

Reporting by John Stonestreet Editing by Jeremy Gaunt

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