Brexit concerns made US Fed pause before deciding on a rate hike

The US Federal Reserve said it was "prudent to wait" for the result of the UK's Brexit vote before deciding whether to raise interest rates last month.

The central bank was concerned about the impact of the UK's referendum on European Union membership on financial markets, minutes from the June 14-15 meeting show.

The minutes said: "Members generally agreed that, before assessing whether another step in removing monetary accommodation was warranted, it was prudent to wait for additional data on the consequences of the UK vote.

"Most participants noted that the upcoming British referendum on membership in the European Union could generate financial market turbulence that could adversely affect domestic economic performance."

Policymakers also cited a severe slowdown in hiring by US employers as a reason for leaving interest rates steady last month.

The US labour market added just 38,000 jobs in May, the lowest number since September 2010.

The central bank decided to keep interest rates between 0.25% and 0.5% when it met last month.

The Brexit vote on 23 June shocked investors and triggered $2trn (£1.5trn, €1.8trn) in losses in global stock markets the day after the referendum .