Fed Chair: Global Turmoil Justifies Rate-Hike Hesitation
Global financial uncertainty could throw a wrench in the US economy, and justifies slowing the Fed’s rate hike plans, Fed chair Janet Yellen says.
“Given the risks to the outlook, I consider it appropriate for the committee to proceed cautiously in adjusting policy,” Yellen said Tuesday.
The Fed kept rates steady after its March meeting, cutting projected rate hikes for the year in half—despite only slightly changing its generally positive economic forecast, the Wall Street Journal reports.
Yellen says the market's volatility last summer and in early 2016 shows how shaky the global economy is. Her dovish sentiments sent stocks soaring, along with gold, while Treasury yields and the dollar fell. [WSJ]