Economics
Yellen Signals Rate Path Hinges on Whether Turmoil Persists
- Uncertainty over China has raised concerns over global outlook
- Yellen reiterates Fed expects to raise rates at `gradual' pace
Yellen: No Known Restriction Preventing Negative Rate
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Chair Janet Yellen said the Federal Reserve still expects to raise interest rates gradually while making it clear that continued market turmoil could throw the central bank off course from the multiple increases that policy makers have forecast for 2016.
“Financial conditions in the United States have recently become less supportive of growth,” Yellen said in testimony prepared for delivery Wednesday before the House Financial Services Committee in Washington. “These developments, if they prove persistent, could weigh on the outlook for economic activity and the labor market.”