New | Number of Fed doves growing, may push US rate increase into 2016

Federal Reserve Chair Janet Yellen insisted only two weeks ago that the US economy remained on a path that would allow the central bank to raise rates in 2015 for the first time in nine years.

Now however, some of her colleagues are suggesting it might be better to wait until late this year or even 2016, citing concerns about the international economic outlook and US consumers’ reluctance to open their wallets.

Those concerns will be back in focus on Friday when May job numbers are due. The figures are expected to show a 225,000 gain in employment, broadly in line with recent averages, but a disappointing reading could strengthen the dovish camp.

Lael Brainard, a voting member of the Federal Open Markets Committee, signalled this week that it may be prudent to delay a rate rise. She was followed on Thursday by Daniel Tarullo, another voting member, who said data this year had so far failed to show a rebound from the first quarter.

"We get another job number tomorrow, but I think in a broader sense, there are more questions at this point in 2015 than at this point in 2014," Tarullo said.

Long-time dove Charles Evans of the Chicago Fed suggested he might push his preferred timing for a first rate rise into the second half of 2016 from early next year, matching the view of his colleague, Narayana Kocherlakota at the Minneapolis Fed.