Yellen: Fed not likely to reverse course on rates despite risks

U.S. Federal Reserve Board Chair Yellen testifies at the House Financial Services Committee in WashingtonTightening financial conditions and uncertainty over China pose risks to the U.S. recovery, but chances are slim the Federal Reserve would need to reverse the rate tightening cycle it began in December, Fed Chair Janet Yellen told U.S. lawmakers on Wednesday. Global risks have intensified and could slow the U.S. economy, but "I don't expect the (Federal Open Market Committee) is going to be soon in the situation where it is necessary to cut rates," Yellen said. Yellen's comments are her first in public since the Fed raised rates in December and ended a seven-year stint where borrowing costs were held near zero.



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VW recalls 680,000 brand cars in U.S. over airbag problems

Wheel treatment of 2016 Volkswagen Dune convertible is seen at the Washington Auto Show in WashingtonHAMBURG (Reuters) – Volkswagen said on Wednesday it was recalling 680,000 cars of its namesake brand in the United States because Takata-made airbags in them could be defective. The recall affects models built between 2006 and 2014, a spokesman said, declining to comment on how much the recall could cost. Daimler said late on Tuesday it would recall 840,000 U.S. vehicles with Takata airbag inflators that could be defective, resulting in a charge of 340 million euros ($ 382.53 million) for the carmaker. (Reporting by Jan Schwartz; Writing by Andreas Cremer; Editing by Maria Sheahan)



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Asia stocks drop as bank concerns smoulder, yen stands tall

Pedestrians walk past an electronic board showing the graphs of the recent fluctuations of Japan's Nikkei average outside a brokerage in TokyoBy Shinichi Saoshiro TOKYO (Reuters) – Asian stocks fell on Wednesday on growing concerns about the health of the world's banks, particularly in Europe, pushing investors into safer assets such as the yen, which stood near a 15-month high versus the dollar. Spreadbetters expected the pessimism to carry over into Europe, forecasting a slightly lower open for Britain's FTSE , Germany's DAX and France's CAC . Japan's Nikkei , which tumbled more than 5 percent Tuesday, suffered another bruising session and slid to a 16-month low.



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