Federal Reserve Chair Janet Yellen said on Tuesday the US central bank should proceed only cautiously as it looks to raise interest rates, pushing back on a handful of her colleagues who have suggested another move may be just around the corner.
In her first comments since the Fed decided to hold rates steady two weeks ago, Yellen said inflation has not yet proven durable against the backdrop of looming global risks to the US economy, including still-low oil prices and concerns over China.
The comments, which boosted stocks and bonds and hit the dollar, come as healthier measures of U.S. inflation and manufacturing have prompted some other Fed officials to say another policy tightening could come as soon as April.
But Yellen was not about to change tack just yet.
"Given the risks to the outlook, I consider it appropriate for the Committee to proceed cautiously in adjusting policy," she said of the Fed's policy-making Federal Open Market Committee.
At its March policy meeting, the Fed had nodded to an overseas slowdown and early-year market turmoil in justifying a pause to its policy tightening. At the time, Fed officials also downgraded economic expectations and predicted only about two more rate hikes this year, down from a December prediction of four.
Yellen said she still expected that headwinds from weak growth abroad, low oil prices and uncertainty over China would abate and allow the US recovery to continue alongside a "gradual" series of rate hikes.
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In her first comments since the Fed decided to hold rates steady two weeks ago, Yellen said inflation has not yet proven durable against the backdrop of looming global risks to the US economy, including still-low oil prices and concerns over China.
The comments, which boosted stocks and bonds and hit the dollar, come as healthier measures of U.S. inflation and manufacturing have prompted some other Fed officials to say another policy tightening could come as soon as April.
But Yellen was not about to change tack just yet.
"Given the risks to the outlook, I consider it appropriate for the Committee to proceed cautiously in adjusting policy," she said of the Fed's policy-making Federal Open Market Committee.
At its March policy meeting, the Fed had nodded to an overseas slowdown and early-year market turmoil in justifying a pause to its policy tightening. At the time, Fed officials also downgraded economic expectations and predicted only about two more rate hikes this year, down from a December prediction of four.
Yellen said she still expected that headwinds from weak growth abroad, low oil prices and uncertainty over China would abate and allow the US recovery to continue alongside a "gradual" series of rate hikes.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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