Sarah Bloom Raskin, a member of the board of governors of the US Federal Reserve, has warned of the major drag US fiscal policy is having on the economy.

Speaking at the Society of Government Economists and the National Economists Club in Washington, DC, Raskin said fiscal policy was a headwind to the recovery that intensified this year. "Tax legislation signed into law in January and the sharp spending cuts associated with sequestration will likely significantly hinder GDP growth this year,"