WASHINGTON (Reuters) - The U.S. Federal Reserve must weigh the effects of post-crisis financial regulations and new channels through which policy affects markets as it prepares to raise interest rates, Fed Chair Janet Yellen said on Thursday.
Yellen, kicking off a research conference on policy transmission and implementation after the 2007-2009 financial crisis, said the U.S. central bank also must weigh the disadvantages of its policy actions in light of new tools meant to help the Fed raise rates.
Fed "policymakers should be mindful of new channels for monetary policy transmission that may have emerged from the intricate economic and financial linkages in our global economy that were revealed by the crisis," she said in prepared remarks.
"It is crucial to understand the effect of regulations and possible changes in financial intermediation on monetary policy implementation and transmission," Yellen added.
Yellen, who has said the Fed is on track to raise rates this year, did not comment on the rate hike timing or the U.S. economy.
