Fed chief: Brexit would have "consequences" for US, global economy

Next week's referendum on European Union membership by British voters was a factor in the US central bank declining to tighten monetary policy, Federal Reserve Chief Janet Yellen says.

The possibility of a so-called Brexit from the EU was "one of the uncertainties" discussed in this week's meetings of the Fed's monetary policy committee, she says.

Brexit "is something we discussed, and I think it's fair to say that it was one of the factors that factored into today's decision" to leave the Fed's benchmark interest rate at a historically low 0.375 per cent, Yellen says.

A British departure from the bloc "could have consequences for economic and financial conditions in global financial markets ... [and] in turn for the US economic outlook."

Last update: Fri, 24/06/2016 - 08:49

More from Europe

No agreement reached between Russia, Ukraine on gas deliveries

Russian and Ukrainian officials failed to reach an agreement on gas deliveries this winter in a first round of EU-...

Britain jails man for posting Islamic State video on Facebook

A British court sentenced a 31-year-old man to two years in prison on Friday after he was convicted of encouraging...

Latvian police fine couple after monumental public sex session

A pair of tourists were fined 250 euros (263 dollars) on Friday after being caught having sex on the Freedom...

Terror suspect arrested in Rotterdam in possession of Kalashnikov

A special Dutch police unit on Friday arrested a terror suspect in Rotterdam.

OSCE meeting fails to reach agreement amid "marked differences"

A meeting of the Organization for Security and Co-operation in Europe (OSCE) in Hamburg ended on Friday with...