Yellen says Fed will raise rates slowly

Federal Reserve Chair Janet Yellen says the U.S. economy faces a number of global threats that could derail growth and compel the Fed to slow the pace of future interest rate hikes.

In particular, she notes in her semiannual report to Congress the widening fallout from concerns over China’s weaker currency and economic outlook, which is rattling financial markets around the world.

Yellen says that while the Fed expects to raise interest rates gradually, they are not on any preset course. The Fed would likely move slower “if the economy were to disappoint.”

Many economists had expected four hikes this year. But they now say the Fed may hike just twice or less.

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