21.06.201610:08:00UTC+00Yellen Projects Gradual Rate Hikes, Warns On Brexit Impact

Federal Reserve Chair Janet Yellen still expects 'gradual' rate hikes as global headwinds die down, the nation's top central banker told lawmkers Tuesday morning.

A "cautious approach" on interest rates "remains appropriate" amid "considerable uncertainty" about the economic outlook, Yellen said in semi-annual testimony before the Senate Banking Committee.

Yellen said Thursday's Brexit vote in the U.K. could have "significant economic repercussions" if the British decide to leave the European Union.

Earlier in the day, the Federal Reserve gave its assessment of risks associated with the Brexit:

"Even given moderate financial vulnerabilities, a number of possible external shocks, including if the United Kingdom chooses to leave the European Union in a pending referendum, could pose risks to financial stability."