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Yellen: Rate hikes likely

Federal Reserve Chair Janet Yellen didn't say exactly when the Fed would begin raising interest rates.

WASHINGTON — Federal Reserve Chair Janet Yellen pointed Tuesday to a solid U.S. job market and economy and said the Fed will likely resume raising interest rates in the next few months. But with uncertainties surrounding President Donald Trump’s proposals, Yellen said the Fed still wants to keep assessing the economy.

Testifying to a Senate committee, Yellen noted that Fed officials forecast in December that they would raise rates three times in 2017. That would mark an acceleration from 2015 and 2016, when they boosted rates once each year.

“Precisely when we would take an action, whether it is March, or May or June ... I can’t tell you which meeting it would be,” Yellen said in response to a question.

Though Yellen didn’t rule out a rate hike at the Fed’s next meeting in mid-March, most economists and investors think the next one will occur in June.

Until then, the details of Trump’s ambitious proposals — for tax cuts for individuals and businesses, greater spending on infrastructure projects, changes to trade deals and a relaxation of regulations — could remain hazy.

Yellen avoided making critical observations of the president’s economic ideas. During the campaign, Trump w as at times harshly dismissive of Yellen. At one point, he had declared that she should be “ashamed of herself” for, in his view, keeping rates low to favor Democrats.

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