Yellen says Fed taking on adverse feedback loop

PALO ALTO, Calif., April 3 (Reuters) - San Francisco Federal Reserve President Janet Yellen said on Thursday that the central bank is not out of options in its fight against an "adverse feedback loop" in the economy and financial sector.

"We have further tools that we can use" if problems worsen, Yellen told reporters after a speech at the Stanford Institute for Economic Policy Research in Palo Alto, California.

Still, Yellen said she is "very uncertain" about the direction of the federal funds rate, the Fed's primary monetary policy instrument.

Policy-makers need to worry about both inflation and economic growth and are aware of not allowing a repeat of the 1970s wage-price spiral, she said. (Reporting by Ros Krasny; Editing by Leslie Adler)