Fed member cautions on September rate hike

Lael Brainard said case to tighten is 'less compelling'

Higher interest rates could damage the fragile US economy, said Lael Brainard, a member of the Federal Reserve's Open Market Committee (FOMC) a week before the next interest rate decision is due.

Several Fed officials have recently said a hike should be considered in September, in a bid to boost inflation. Brainard, who has consistently voted against an increase, said during a speech in Chicago a rise this month could put the US economic recovery in jeopardy and exceeded the risk that higher rates would increase inflation, according to BBC News. She said economic weakness "counsels prudence" and the committee should await "material further progress" in the labour market before going ahead with a raise. Fed plots more gradual rate rises as global risk weighs "In the prese...