Yellen says improving economy strengthens case for rate hike
WASHINGTON — Federal Reserve Chair Janet Yellen told Congress on Thursday that an improving U.S. economy has strengthened the case for raising interest rates. Her comments were seen as boosting the likelihood of a rate hike in December, as the country prepares for President-elect Donald Trump to take office.
Yellen also said it was “fully my intention” to remain as Fed chair until her term ends in January 2018. She said she could not imagine any circumstance that would cause her to leave early, addressing speculation that she might step down under Trump, given his critical comments of her during the election campaign.
In her testimony to a congressional committee, Yellen noted that the job market has made further improvement this year and that inflation, while still below the Fed’s 2 per cent target, has started to pick up.
She told the committee that reports that have come out since the Fed met in early November show that the economy has continued to make good progress in achieving the goals the Fed wants to see before it raises rates again.