WASHINGTON—Federal Reserve Chair Janet Yellen has signaled that a rate hike could be coming “relatively soon.”
Yellen, testifying before Congress’ Joint Economic Committee, commented on monetary policy as well as her future at the Fed. She said she plans to fill out her four-year term, which ends in January 2018.
“The FOMC continues to expect that the evolution of the economy will warrant only gradual increases in the federal funds rate over time to achieve and maintain maximum employment and price stability,” Yellen told the panel. She also cautioned that the Federal Open Market Committee “could end up having to tighten policy relatively abruptly” if it waits too long to raise rates.
Yellen emphasized that the country has made progress toward “maximum employment” and price stability.
“With inflation firming, the Fed cannot afford to wait any longer on a rate hike,” said NAFCU Chief Economist and Director of Research Curt Long. “NAFCU anticipates a 25-basis-point rate increase next month.”