An emphasis on the global economy is leading the change, he said.
"When you are the largest economy in the world, or even the second-largest economy in the world, you have a responsibility to pursue strategies that are not only in the best interest of your own country but also in the best interest of the global economy," Chan told CNBC's "Worldwide Exchange."
Yellen's comments Wednesday afternoon signaled that four rates hikes are off the table. The Fed also lowered its target U.S. growth rate for this year and 2017, which gives the central bank room to breathe, Chan said.
"If growth is slowing down here, there's no need to be as aggressive when it comes to interest rate hikes."
International financial markets were a major part of Yellen's remarks, although they are not part of the Fed's dual mandate to maximize employment and stabilize prices. But Chan said the Fed is wise to factor in global markets.
"They have to watch anything that has a dramatic impact, or can have a potential impact, on the things they care about whether it's growth or whether it's employment," he said.