Dubai - The Federal Reserve has concerns about inflation rates, said Fed Chair Janette Yellen.

Late Thursday, the Fed left interest rates unchanged at record lows. The Fed lowered its long-term outlook for the US economy. Its forecasts for GDP growth in 2016 and 2017 were downgraded, while the Fed’s Funds Rate forecasts were also lowered to 3.5% compared to 3.75% at the previous policy meeting.

The Federal Reserve Open Market Committee (FOMC) decided on Thursday after a two-day meeting, maintained its 0 to 0.25% target range for the federal funds rate.

The Fed believes that falling energy and import prices could put downward pressure on inflation in the near term.

During her press conference, Yellen reiterated that the Fed is data dependent and the first rate hike will be appropriate when the Fed see further improvement in the labour market and when it has confidence that inflation will move back to the target rate.