Fed’s Janet Yellen Says Global Risks Could Pose Threat To US Growth
Tightening financial conditions driven by falling stock prices, uncertainty over China and a global reassessment of credit risk could throw the U.S. economy off track from an otherwise solid course, Federal Reserve Chair Janet Yellen said on Wednesday in prepared testimony to Congress. In remarks that combined a steady-as-she-goes account of Fed policy with an acknowledgement of intensifying risks, Yellen said there are good reasons to believe the United States will stay on a path of moderate growth that will allow the Fed to pursue “gradual” adjustments to monetary policy. Investors have all but ruled out a rate hike for the rest of the year, but Yellen’s comments kept the central bank’s options open. U.S. stock markets opened higher and the dollar crept up as well.