Waiting for all the Q2 data on the economy might be better, Fed´s Brainard says

One of the Federal Reserve´s top policymakers said waiting to have complete information on the US economy´s performance in the second quarter before hiking interest rates might be advantageous.

"In this environment, prudent risk management implies there is a benefit to waiting for additional data to provide confidence that domestic activity has rebounded strongly and reassurance that near-term international events will not derail progress toward our goals.

"In addition, because the depressed level of the neutral rate of interest reflects forces that are likely to persist, the appropriate path of policy is likely to remain shallow for several years," Federal Reserve governor Lael Brainard said in remarks prepared for a speech to the Council on Foreign Relations, in Washinton DC.

At the start of her speech, Brainard referenced the fact that the monthly pace of job gains had slipped to 116,000 over the last three months, versus the 220,000 observed over the preceding twelve months.

"The unemployment rate moved lower, reaching 4.7%, a new low in the current recovery, but involuntary part-time employment increased and the labor force participation rate declined," she added.

"Prudent risk-management would suggest the risks from waiting until the totality of the data provides greater confidence in a rebound in domestic activity, and there is greater certainty regarding the "Brexit" vote, seem lower than the risks associated with moving ahead of these developments."