Yellen said, however, that rising interest rates could submerge other economies. A strong U.S. dollar would make other currencies comparatively weaker but could also make their exports cheaper and more attractive.
“On the one hand, it can strengthen their ability to export which is good for their growth. On the other hand, to the extent that countries have dollar-denominated debt, it can make those debt problems — which already are very severe — more difficult,” she said.
