Yellen asserts that rate hikes are data-dependent

Federal Reserve chairwoman Janet Yellen pointed in her testimony today ahead of Congress that the bank's monetary policy isn't a rigid system of guidelines, but rather depends on economic data, which will ultimately determine the pace of interest rate hikes. 

Yellen said that a better-than-expected improvement in U.S. economic data will push the bank to accelerate its scheme of rate hikes, and the opposite is true, which comes as Yellen signals that current conditions don't support growth.  

Growth rates are impeded currently in the U.S. as the currency gained strength, which affects exports negatively and causes a noticeable slowdown in growth, especially as China's yuan gets devalued, which dampens the competitiveness of U.S. exports. 

The jobs sector is experiencing some weakness currently after a long streak of growth, which is attributed to the slumping oil prices which forced energy companies to lay off workers and cut capital investments. 

On the other hand, family spending has grown as energy and fuel costs got lower, while jobs and wages rose considerably, combined with the rising purchasing power of the dollar. 

As for inflation, Yellen expects it to remain low under the pressure of falling oil prices, but pointed that in the medium term, inflation rates are expected to reach the bank's target of 2%.