FederalReserve Chair Janet Yellen said March 29 that significant changes in oilprices, interest rates and stock values since December "have notmaterially altered the [Federal Open Market Committee's] baseline, or mostlikely, outlook for economic activity and inflation over the medium term."

While"this is not to say that global developments since the turn of the yearhave been inconsequential," the FOMC still expects further labor marketimprovement and to see its 2% inflation target reached in two or three years,she said.

Yellennoted that strength in domestic spending has "offset the drag coming fromabroad," but added that the committee must take into account"potential fallout" from global events. Likewise, while she expectsglobal turbulence to have a limited effect on the U.S. economy, she cautionedthat "this assessment is subject to considerable uncertainty."