Federal Reserve Chair Janet Yellen said the central bank should increase interest rates cautiously, pushing back some of her colleagues’ implication another hike might happen soon.
Yellen, in her first remarks since their decision to retain rates, said inflation is not that durable in the light of impending global risks to the US economy, including woes over Chinese economy and slumping oil prices.
Referring to the Federal Open Market Committee, the Fed head added the committee can push ahead with adjusting policy given the perils to the outlook. However, Yellen still awaited headwinds from low global growth.
Yellen also said the developments abroad suggest hitting their goals for employment and inflation will possibly require a somewhat lower path for rates than projected last December.
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