WASHINGTON–The Fed is likely to raise its benchmark interest rate when it meets later this month.
In remarks in Chicago, Federal Reserve Chair Janet L. Yellen said a rate increase is likely coming sooner than later.
“At our meeting later this month, the committee will evaluate whether employment and inflation are continuing to evolve in line with our expectations, in which case a further adjustment of the federal funds rate would likely be appropriate,” Yellen said.
The Federal Open Market Committee is scheduled to meet in Washington on March 14 and 15.
The Fed last raised its benchmark rate in December of 2016 to a range of 0.5% to 0.75%, which remains relatively low, historically. Fed officials have stated the inflation rate has moved back toward its target 2% level, another indicator it may feel comfortable in making a move.
Yellen said in her remarks that she expects the Fed is seeking to end its stimulus campaign, which would require three increases of .025 points.