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But policy maker sees U.S. stuck in low-growth environment for two to three years.
Britain's Brexit vote was a factor in Fed's holding rates steady.
Yellen watchers note that she omitted, in a speech today, any indication of when the Fed might hike interest rates.
Reduction in labor force participation, plus downward revision in April job numbers, suggest global slowdown is affecting domestic economy.
President of Dallas Fed would likely advocate for raising rates in June, except for concerns about whether the U.K. will stay in the EU.
Fed statement cites labor market improvments and removes language suggesting economy continues to be at risk.