May 31, 2016
An interest rate hike is “appropriate” and is likely to happen in the “coming months,” says Federal Reserve Chair Janet Yellen. As a result of the continued improvement in the U.S. economy, another increase would be warranted, she noted.
Her insights into potential future monetary policy actions set a framework leading into the Federal Open Market Committee meeting next month, when the group will discuss a second interest-rate increase. After seven years of near-zero borrowing costs, the Fed hiked rates in December.
Yellen’s comments, when combined with other factors such as notes released from April’s policy meeting, and recent speeches by Fed officials, appear to signal a change is ahead. That’s heightened investor expectations for another tightening move in June or July.