Yellen says economy likely ready for rate hike later in 2016
WASHINGTON — Federal Reserve Chair Janet Yellen said Wednesday that the central bank has no “fixed timetable” for raising interest rates but she believes the economy is ready for a rate hike by the end of the year.
She said during an appearance before the House Financial Services Committee that when the Fed met last week, a majority of her colleagues believed it would be appropriate to raise rates before the end of this year.
The Fed boosted its key policy rate in December 2015 to a range of 0.25 per cent to 0.5 per cent. But since then, officials have left the rate unchanged. Yellen told the lawmakers that she believed it would make sense to boost the rate again “if things continue on the current path and no significant new risks arise.”
The Fed last week voted 7-3 to keep its key interest rate where it has been all year. But it did send a strong signal that it is prepared to raise rates before the end of the year, with many expecting a move in December.