Bad news for countries like India as US Fed further cuts economic stimulus

The new chief of the Federal Reserve has said the bank will continue to cut its stimulus measures for the US economy.

Janet Yellen said if the US economy keeps improving, the bank would take further measured steps to reduce its support.

In her first comments since taking over, Yellen also signalled that interest rates would remain low, the BBC reports.

Though Yellen noted there is volatility in global financial markets, she said at this stage it did not 'not pose a substantial risk to the US economic outlook,' the report said.

Yellen said there had been an improvement in the US jobs market, but added that the recovery was 'far from complete'.