A usually hawkish governor of the US Federal Reserve yesterday called for a more balanced monetary policy in a sign the central bank could be edging back from considering an interest rate rise.

In a widely-watched speech, Federal Reserve Board governor, Mr Laurence Meyer suggested that the central bank's bias toward monetary tightening may no longer be justified because of the financial crisis in Asia that erupted last year.

"Because upside and downside risks for growth and inflation appear to be more balanced than had been the case earlier, I believe monetary policy also needs to be in a more balanced position," he said in remarks prepared for delivery in Washington.