US interest rates are set to remain low, the new chair of the Federal Reserve, Janet Yellen, has signalled.
In her first public comments since taking over, Ms Yellen said the US labour market recovery was “far from complete”.
However, if the US economy keeps improving, she said the bank would reduce its stimulus measures.
Her testimony was released ahead of a House of Representatives committee hearing later.
Ms Yellen noted the recent volatility in global financial markets, but said that at this stage it did not “not pose a substantial risk to the US economic outlook”.
She emphasised continuity in the Fed’s approach to policy, saying she strongly supported the approach driven by her predecessor, Ben Bernanke.
While the US jobless rate has fallen, it still remains “well above levels” the Fed sees as consistent with maximum sustainable employment, she said.
In her prepared remarks, she said that in assessing the health of the labour market, it was important to consider “more than the unemployment rate”.
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