August 28, 2015 / 12:47 PM / in 4 years

Market turmoil shouldn't delay at least one Fed rate hike: Bullard

St. Louis Fed President James Bullard speaks about the U.S. economy during an interview in New York February 26, 2015. REUTERS/Lucas Jackson

JACKSON HOLE, Wyo. (Reuters) - Recent market turmoil should not delay the Federal Reserve from raising U.S. interest rates at least once, given that the selloff and a slowdown in China have so far had little effect on the U.S. economy, a top Fed official said on Friday.

St. Louis Fed President James Bullard told Reuters that if the global financial market volatility continues until the central bank’s policy meeting in mid-September, the policy-making Federal Open Market Committee would be hesitant to begin tightening policy.

But Bullard said in the interview he still backs a rate hike next month since the global stock selloff has not been “so radical” to convince the Fed to change its policy pace. The Fed could hike rates once then “hang out” at that level if inflation remains too low, he added.

Reporting by Jonathan Spicer; Editing by Chizu Nomiyama

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