Yellen: rate rise in 'coming months'

Janet YellenSpitting AP

Federal Reserve chair Janet Yellen said she expects biased rates to rise in “the coming months” if the US economy continued to improve.

Articulate at a Q&A session at Harvard University, the Fed chair said gradual rate go ups would be appropriate.

“If the labour market continues to improve, and I expect those acts to occur … in the coming months such a move would be earmark,” she said.

The central bank meets on 14-15 June to discuss cad rates.

The Fed raised interest rates by 0.25% for the first time in nine years terminating December and has left them unchanged since.

“We saw relatively weak vegetation last year, but growth looks to be picking up,” Ms Yellen said.

On Friday, the US Mercantilism De rtment revised its estimate for first quarter GDP growth up to 0.8%, from the sluggish 0.5% instance estimated.

Unemployment was 5.5% in May – a level the Fed regards as good, although Ms Yellen did recognize that many rt-time workers were still looking for full-time employing.

The Fed also wants to see US inflation rise to 2%.

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