Former US Treasury Secretary Yellen says one Federal rate cut this year

Former U.S. Treasury Secretary Janet Yellen sees one interest rate cut by the Federal Reserve as possible this year, even as the Iran war creates supply shocks in the global economy that put pressure on inflation.



"Short-term inflation expectations are up slightly, but they're going to watch all of that very carefully, and I think they have an open mind," Yellen said on Wednesday at the HSBC Global Investment Summit in Hong Kong.



Fed policymakers in March opted to keep benchmark interest rates steady in their current 3.50% to 3.75% range, and a majority projected at least one rate cut would likely be appropriate this year.



President Donald Trump has repeatedly criticised Fed Chair Jerome Powell for not undertaking the steep rate cuts Trump feels the U.S. economy requires, and has said he believes that his nominee to replace Powell, Kevin Warsh, will deliver them.



Yellen said the Middle East conflict had intensified economic uncertainty.