The Federal Reserve is on track to raise interest rates at its December 15-16 meeting, Fed Chair Janet Yellen signalled in a speech to the Economic Club in Washington.
Yellen stopped short of explicitly saying the Fed will hike rates this month, but acknowledged that conditions for tightening are on the verge of being met.
“I currently judge that U.S. economic growth is likely to be sufficient over the next year or two to result in further improvement in the labor market,” Yellen said.
“Ongoing gains in the labor market, coupled with my judgment that longer-term inflation expectations remain reasonably well anchored, serve to bolster my confidence in a return of inflation to 2% as the disinflationary effects of declines in energy and import prices wane,” she added.
The material has been provided by InstaForex Company – www.instaforex.com