Yellen says Brexit vote influenced Fed call to hold rates steady

(June 16): Federal Reserve Chair Janet Yellen said next week’s referendum in the UK on whether to remain in the European Union was a factor in the US central bank’s decision to hold interest rates steady at its meeting Wednesday in Washington.

“It is a decision that could have consequences for economic and financial conditions in global financial markets,” Yellen said during a press conference following the meeting. A vote on June 23 by Britons to leave the EU “could have consequences in turn for the US economic outlook,” she said.

Growing worries over a potential British exit have roiled financial markets, sending stocks lower around the globe in the past week, pushing investors into safe havens like German bonds and US Treasuries, and weakening the pound. Five opinion polls published this week showed “Leave” supporters ahead.

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