The Fed Chairwoman Janet Yellen testified before the House Financial Services Committee on Wednesday that it is unlikely that the Fed will cut its interest rate soon as the risk of recession is low.

"We've not yet seen a sharp drop-off in growth, either globally or in the United States, but we certainly recognize that global market developments bear close watching," the Fed chairwoman noted.

Yellen was not sure if negative rate are legal as she was asked about the implementation of negative interest rates.

"We didn't fully look at the legal issues around that. I would say that remains a question that we still would need to investigate more thoroughly," she said.