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25 September 2015

Fed Chairwoman Janet Yellen expects that the Fed will start raising its interest rates by the end of the year

The Fed Chairwoman Janet Yellen said in a speech at the University of Massachusetts on Thursday that she expects that the Fed will start raising its interest rates by the end of the year, followed by a gradual pace of interest rate hikes.

"Most of my colleagues and I anticipate that it will likely be appropriate to raise the target range for the federal funds rate sometime later this year," she said.

Yellen noted that the inflation will rise toward the Fed's 2% target as low oil prices are temporary.

The Fed chairwoman also said that the slowdown in the global economy is not significant not to raise interest rates this year.

Yellen pointed out that the decision to raise interest rates will depend on further progress toward achieving full employment and a rise in the inflation toward the 2% target.

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