Recent market turmoil should not delay the Federal Reserve from raising interest rates at least once, given that the global equities selloff and China's economic slowdown have had little effect on the U.S. economy, a top Fed official said Friday.

St. Louis Fed President James Bullard told Reuters he still favored hiking rates at the Fed's next policy-setting meeting in mid-September, though he added the U.S. central bank would be hesitant to do so if markets remained volatile.

Cleveland Fed President Loretta Mester said the U.S. economy still could handle a modest rate hike, though she did not commit to backing a move next month.

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