Federal Reserve Chair Janet Yellen said on Tuesday the US central bank should proceed “cautiously” as it looks to raise interest rates, because inflation has not yet proven durable against the backdrop of looming global risks to the US economy, Reuters reported on Tuesday.
“Developments abroad imply that meeting our objectives for employment and inflation will likely require a somewhat lower path for the federal funds rate than was anticipated in December when the Fed raised rates for the first time in a decade,” Yellen was quoted as saying at the Economic Club of New York.
“Given the risks to the outlook, I consider it appropriate for the Committee to proceed cautiously in adjusting policy,” she reportedly added, referring to the policy-setting Federal Open Market Committee.