US could raise interest rates soon: chairman Janet Yellen – Milenio.com

The Federal Reserve could raise interest rates “relatively soon” if the economic data continue to point to an improvement in the labour market and to an acceleration of inflation, said the president of the entity, in a clear signal that there could be a rise in December.

Yellen said that in the meeting held in early November, the Fed members felt that the arguments for tightening monetary policy had been strengthened.

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“Such an increase could well be appropriate relatively soon”, said Yellen in his first statements since the united States chose the 8 of November, republican Donald Trump as your next president.

Yellen, who is set to make these statements before the Joint Economic Commission of the Congress this afternoon, said the economy seems to be on a path of moderate growth, which could help to achieve full employment and push inflation toward the official goal of the Fed’s 2 percent.

legislators present in the commission, that there are members of the House of Representatives and the Senate, will be able to ask questions to Yellen when you finish your statement.

The president of the Fed presented an evaluation on the general upbeat of an economy that continues to generate employment at a pace suitable to absorb the new workers and keep others in their place of work.

The growth of wages “has improved”, said Yellen. Consumer spending, an index is vital to the be the main component of the Gross Domestic Product, “he continued making modest gains” and helped a rebound in economic growth from a weak first half. He said, furthermore, that it expected to consolidate the global growth, something considered for months as a big risk due to the weakness in Europe and China.

Without a doubt, one of the main questions for the Fed now will be the actions that will be launched Trump, but Yellen did not address the elections in their prepared remarks.

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Yellen said that, as they are, the current interest rates at between 0.25 and 0.5 percentage points are driving the economic activity, and that the country has “a little more space to go” before inflation becomes a concern.

right Now, he noted, “the risk of being left behind the curve of inflation in the near future seems limited,” and ensures only an increase gradual of the federal funds rate. However, this could change, especially when you take possession of the new Government.

“The path that is appropriate for the federal funds rate will change in response to changes in the landscape,” said Yellen.

” MCM ”