Yellen: Fed not likely to reverse course on rates despite risks

[WhiteTara]

http://www.reuters.com/article/us-usa-fed-idUSKCN0VJ1F2

ightening financial conditions and uncertainty over China pose risks to the U.S. recovery, but chances are slim the Federal Reserve would need to reverse the rate tightening cycle it began in December, Fed Chair Janet Yellen told U.S. lawmakers on Wednesday.

Global risks have intensified and could slow the U.S. economy, but "I don't expect the (Federal Open Market Committee) is going to be soon in the situation where it is necessary to cut rates," Yellen said. "There is always a risk of a recession...and global financial developments could produce a slowing in the economy."

But "I think we want to be careful not to jump to a premature conclusion about what is in store for the U.S. economy. I don't think it is going to be necessary to cut rates."

Yellen's comments are her first in public since the Fed raised rates in December and ended a seven-year stint where borrowing costs were held near zero.

In prepared remarks to the House Committee on Financial Services she acknowledged a series of global problems that have grown worse since then. Financial conditions overall have tightened, driven by falling stock prices, uncertainty over China and a global reassessment of credit risk that could throw the U.S. economy off track.

[saturnsring]

1. OF COURSE NOT THERE'S AN ELECTION COMING UP AND THE FEDS NEED TO TANKS THE ECONOMY

[yourout]

2. I've seen this movie before. Raise the rates now and...

Guarantee the next president well be dealing with another recession.

[CountAllVotes]

3. Good!

I'm glad that she is sticking to her guns on this issue.

As a person that is not in the Casino, I welcome a rate increase. The sooner the better! Yes we can!!!

& recommend!!