Former U.S. Treasury Secretary Yellen: The Federal Reserve may cut interest rates once this year; the U.S. and China should not decouple

"Short-term inflation expectations have risen slightly, but the Federal Reserve will keep a close watch on this, and I think they remain open-minded," Yellen said at the HSBC Global Investment Summit in Hong Kong on Wednesday. "If I had to make a judgment, imagining myself about to attend the next Federal Open Market Committee meeting where forecasts will be released, my guess is that there may be a rate cut later this year." Yellen noted that the Middle East conflict has increased economic uncertainty. "This has put upward pressure on inflation, as we've already seen in recent inflation reports, but we may see more in the future," she said. "This is truly a broad-based supply shock."