St. Louis Fed President James Bullard said in an interview MNI News that he will back the interest rate hike in September at the Fed's upcoming meeting. He fears financial instability, adding that the Fed should be ready to raise its interest rate faster against financial bubbles.

Bullard noted that he is not concerned that inflation and wages remain low. He pointed out that inflation will increase as the economy expands and oil prices stabilise.

Bullard is not a voting member of the Federal Open Market Committee this year.