Yellen sticks to her guns as global market rout worsens

Washington

FEDERAL Reserve chair Janet Yellen returned to Congress on Thursday and again stressed that the US central bank was not on a "pre-set" path to return policy to "normal", given a worsening meltdown in global stock markets.

But, testifying for a second day before US lawmakers, Ms Yellen said that she still expects that the Fed will gradually raise interest rates this year, given a strong US labour market and steady economic growth.

With investors stampeding to safer assets globally, the head of the world's most influential central bank acknowledged that a weakened global economy and a steep slide in stock markets was …