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Fed chief Janet Yellen says Fed could hike rate sooner than expected

Published on Jul 15, 2014 10:42 PM
 
Federal Reserve Chair Janet Yellen testifies before the Senate Banking Committee on Capitol Hill in Washington on July 15, 2014. The Federal Reserve could raise its interest rate sooner than expected as the jobs market improves, Fed chairman Janet Yellen said on Tuesday, July 15, 2014, adding the Fed was closely watching for risks. -- PHOTO: REUTERS

WASHINGTON (AFP) - The Federal Reserve could raise its interest rate sooner than expected as the jobs market improves, Fed chairman Janet Yellen said on Tuesday, adding the Fed was closely watching for risks.

Ms Yellen, in testimony to Congress, said the policy-setting Federal Open Market Committee (FOMC) was closely following developments in the economy to determine the future path of interest rates.

"If the labour market continues to improve more quickly than anticipated by the committee, resulting in faster convergence toward our dual objectives, then increases in the federal funds rate target likely would occur sooner and be more rapid than currently envisioned," Ms Yellen told the Senate Banking Committee.

But, she said, the future path of interest rates "likely would be more accommodative than currently anticipated" if economic performance is disappointing.

 
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