Fed officials hint at interest rate hikes but Janet Yellen urges caution

Federal Reserve chair says economic uncertainty contributed to decision to delay rate hike twice this year, and expects only 'gradual increases' in the future

Global economic uncertainty including the slowdown in China and collapsing oil prices led to the delaying of an interest rate hike in both January and March, the Federal Reserve chair, Janet Yellen, said on Tuesday. Urging caution, Yellen said she expects "only gradual increases" to be warranted in the future.

"Importantly, this forecast is not a plan set in stone that will be carried out regardless of economic developments," Yellen said. "Instead, monetary policy will, as always, respond to the economy's twists and turns so as to promote, as best as we can in an uncertain economic environment, the employment and inflation goals assigned to us by the Congress."

Related: Weak US consumer spending expected to delay interest rate rise

Related: Weak US consumer spending expected to delay interest rate rise