Britain's EU vote does not pose systemic risk, says Fed governor

A photo illustration shows the flags of the European Union and the United Kingdom.
A photo illustration shows the flags of the European Union and the United Kingdom.PHOTO: AFP

WASHINGTON (REUTERS) - US Federal Reserve Governor Jerome Powell said on Thursday he does not see Britain's June 23 vote on whether to leave the European Union as a systemic risk, but added that it is a possible reason for caution in raising US interest rates.

"I don't think you are looking at a systemic event," Powell said in a response to a question following a speech in Washington.

He added that the so-called Brexit vote could still be a factor in whether the US central bank decides to wait a little longer before it raises rates again.

The Fed increased rates in December, the first such move in nearly a decade.