US STOCKS-Wall St pares gains after Yellen cautions about economy

martes 21 de junio de 2016 10:59 GYT
 

* Yellen says to approach rate hikes cautiously

* Indexes up: Dow 0.1 pct, S&P 0.14 pct, Nasdaq 0.08 pct (Adds details, comments, updates prices)

By Yashaswini Swamynathan

June 21 (Reuters) - Wall Street gave up some gains on Tuesday after Federal Reserve Chair Janet Yellen said the central bank would be cautious in raising interest rates given risks such as Britain's membership in the European Union and a slowdown in the U.S. labor market.

"The pace of improvement in the labor market appears to have slowed more recently, suggesting that our cautious approach ... remains appropriate," Yellen said.

The central bank left interest rates unchanged and cut the economy's growth forecast last week after surprisingly weak monthly hiring data put the economy's recovery in question.

Britain's vote on its EU membership on Thursday has left investors nervous over its repercussions on the U.S. markets.

Weak productivity, slowing economic activity and developments abroad led the committee to expect interest rates to remain low "for some time", Yellen said.

"The Fed's normalization plan in raising interest rates is being met head on with an economic slowdown and collapsing long-term interest rates," said James Abate, chief investment officer at Centre Asset Management in New York.   Continuación...