The Fed Governor Lael Brainard said in a speech on Wednesday that the Fed should be cautious in raising its interest rate.

"The slow progress on inflation, together with the likely low level of the longer-term neutral real rate and the slow pace at which the very low shorter-term rate may move to the longer-term rate, suggest that the federal funds rate is likely to adjust more gradually and to a lower level than in previous expansions. In short, "gradual and low" is likely to be the new normal," she said.

"We should be cautious about raising rates, do so gradually, and carefully assess the effects on economic and financial conditions as we go," Brainard added.