The International Monetary Fund (IMF) said in its on Tuesday that the U.S. economy could be hurt if Fed hikes its interest rates too early. The IMF urged the Fed to delay its interest rate hike until 2016.

The Fed signalled that it is likely to start raising its interest rates in 2015.

"There is a strong case for waiting to raise rates until there are more tangible signs of wage or price inflation than are currently evident. Deferring rate increases and proceeding gradually thereafter would provide valuable insurance against the risks from disinflation, policy reversal, and ending back at a zero fed funds rate," the IMF noted.