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.

 » 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 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.