Yellen to face Congress amid uncertainty on Fed rate policy

WASHINGTON (AP) — Federal Reserve Chair Janet Yellen will address Congress on Wednesday at a time of deepening uncertainty about the Fed's interest rate policies.

Since the Fed raised rates from record lows in December, the economic landscape has become clouded by falling stock markets, global weakness and sharply lower energy prices.

Against that backdrop, lawmakers will likely want to question Yellen about the probable pace of further rate hikes and the Fed's role in supporting the U.S. economy.

The Fed has long awaited faster wage growth for evidence that the job market is as strong as the steady hiring gains and low unemployment rate (now 4.9 percent) would suggest.

Sung Won Sohn, an economics professor at the Martin Smith School of Business at California State University, said he expected Yellen, in addressing Congress, to leave the door open for a gradual rise in rates if market conditions stabilize and the economy rebounds.

Fischer took note of the market turmoil, diminished oil prices and strengthened dollar and said, "If these developments lead to a persistent tightening of financial conditions, they could signal a slowing in the global economy that could affect growth and inflation in the United States."