Fed’s Janet Yellen: Rates May Rise with Inflation Low

By Published on February 25, 2015

Federal Reserve Chair Janet Yellen reiterated Wednesday that the central bank could raise interest rates before inflation picks up as long as it foresees price increases accelerating and the job market continues to advance.

“If we gain confidence and continue to see the labor market improving, we will consider still raising rates,” Yellen told the House Financial Services Committee in her semiannual report to Congress.

In her prepared testimony, Yellen said the Fed would want to see inflation moving toward its annual 2% target “over the medium term” before raising rates. Asked Wednesday what “the medium term” means, Yellen cited Fed policymakers’ forecasts that inflation will reach 1.7% to 2% by the end of 2016, up from a projected 1% to 1.6% by the end of this year.

Read the article “Fed’s Janet Yellen: Rates May Rise with Inflation Low” on usatoday.com.

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