Yellen defended the tactics of caution

Federal Reserve Chairman Janet Yellen defended the decision of the institution to be cautious in tightening monetary policy, citing global risks.

"Global development increases risks to the economic outlook and financial conditions are not as favorable as in December when there were taken first raise rates in a decade." - Said Yellen in a speech in New York, but did not say when she expects the central bank to proceed with the action.

According to Yellen, the negative effects of volatility in global markets during the first seven weeks of 2016 are likely to be limited, but it is not yet certain. Separately, data, pointing to a strengthening of the base inflation in the US is still not sufficiently convincing.

Fed Chairman assured investors that the institution has the necessary tools to support the economy in the case of recession, although it couldn't lower rates significantly. There are possible however, purchases of assets or exchange of short-term versus long-term bonds.