Fed's Yellen says she is neither predicting nor recommending interest rate hikes

The head of the US Treasury issued a clarification of her earlier remarks on interest rates.

On Tuesday evening, Janet Yellen told the Wall Street Journal she had neither predicted nor recommended interest rate hikes.

Earlier that same day, The Atlantic had published an interview in which Yellen said fiscal stimulus could lead to very modest increases in interest rates.

"If anyone appreciates the independence of the Federal Reserve I think that person is me," the Treasury Secretary added.

"The Fed can be counted on to do whatever is necessary to achieve their dual mandate objectives."