Fed Governor Jerome Powell said in a speech on Thursday that the Fed could raise its interest rate soon.

"Depending on the incoming data and the evolving risks, another rate increase may be appropriate fairly soon," he said.

"Several factors suggest that the pace of rate increases should be gradual," Powell added.

Fed governor noted that the referendum on Britain's membership in the European Union could weigh on the Fed's interest rate decision in June.

Powell is a voting member of the Federal Open Market Committee (FOMC).