Yellen rebuffs pressure to hike rates as Fed gives economy room to run

Washington

FEDERAL Reserve chair Janet Yellen braved mounting opposition inside and outside the US central bank and delayed an interest-rate increase again to give the economy more room to run.

While agreeing that the case for a rate rise had strengthened, Ms Yellen on Wednesday argued that it made sense to put off a move for now amid signs that discouraged Americans who dropped out of the labour market are returning and looking for work.

"The economy has a little more room to run than might have been previously thought," Ms Yellen told a press conference in Washington after the Fed's two-day meeting, as she explained the decision to keep rates on hold. "That's good news."

The decision to stand pat drew dissents from three voting members of the Federal Open Market Committee (FOMC) - the first time that's happened since December 2014. It also comes on the heels of an accusation by Republican Party presidential nominee Donald Trump that Ms Yellen is deliberately keeping rates low to help make President Barack Obama look good in his…