US Federal Reserve Chair Janet Yellen in her semi-annual testimony stated that the central bank still intends to hike rates slowly. However, she said that the persistent volatility in the market might delay the Fed's plans of tightening policy. Hence, she reiterated the Fed's message that it is very early to tell how the US economy will be impacted by the recent tightening of financial conditions.

Yellen stated that uncertainty regarding China's economy outlook and exchange-rate policy has worsened worries regarding global growth prospects and has contributed to the recent declines in prices of oil and other commodities.

Lower commodity prices might lead to financial stresses in commodity-exporting economies, mainly in weak emerging market economies and for commodity-producing companies in several nations. Hence, this might risk demand for US exports and financial market conditions might tighten further, according to Yellen.

Overall, the US Fed is likely to resume raising rates later in 2016, supposing that financial markets might calm before long and that the jobless rate continues dropping. The next rate rise by the US Fed is expected in June.