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Economic progress continues in the U.S., but its central bank would be wise to continue keeping policy loose, Fed Governor Lael Brainard said in a closely watched speech Monday.

Amid market concerns that the Fed was about to resume its rate-hiking cycle, Brainard instead offered cautionary tones against moving too fast. In particular, she remains concerned about the impact that global difficulties will have on the U.S. economy.

Still-muted inflation and uncertain developments ahead "counsels prudence in the removal of policy accommodation," Brainard said, according to prepared remarks she was to deliver to The Chicago Council on Global Affairs. "I believe this approach has served us well in recent months, helping to support continued gains in employment and progress on inflation."

Chances of a rate hike at the Fed's next meeting immediately slumped after news of Brainard's speech broke. Traders now anticipate just a 15 percent probability, down from 21 percent before the speech and as high as 30 percent Friday. However, the likelihood of a move before the end of the year edged up slightly, now standing at 59.2 percent, up from 57.7 percent.

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By Thomas M. Burton

The U.S. Food and Drug Administration on Monday gave accelerated approval to the first drug for the crippling disease Duchenne muscular dystrophy, from Sarepta Therapeutics Inc.

The agency's approval comes after an advisory committee to the FDA in April voted 7-3, with 3 abstentions, that the data for the drug weren't enough for agency approval. Specifically, panel members focused on the fact that the company's hope for approval largely was based on a single study of 12 patients.

On Monday, Sarepta shares recently surged 91% to $53.70 after hitting an earlier high of $54.75, its highest point in nearly three years. The stock in April fell as low as $8 after the FDA panel failed to back the drug, but the price had been rising in recent weeks amid optimism for FDA approval. The gains Monday valued the company at $2.6 billion.

Duchenne is progressive, severely crippling illness that afflicts male children. It is estimated that it affects about 1 in 3,500 boys world-wide. It destroys muscles and frequently kills patients by the time they are in their 30s.

At the FDA panel hearing, many parents gave often-emotional testimony about how -- despite the scientific data -- they were convinced that their own children had benefited from taking the drug.

By late May, Sarepta had announced that the FDA wouldn't make a decision by the deadline and that it would work with the agency in its examination of the data. Before that panel meeting, FDA staffers had indicated they were "prepared to be flexible with respect to a devastating illness with no treatment options."

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