Fed rate hike may be warranted later this year: Yellen

Saturday, 28 March 2015 - 18:17

An interest rate hike by the Federal Reserve may be warranted later this year, with a gradual path expected to follow, although a downturn in core inflation or wage growth could force it to hold off, the central bank's chief said yesterday.

Fed Chair Janet Yellen said that after the first rate increase a further, gradual tightening in monetary policy will likely be warranted.

She said, if incoming data fails to support the Fed's economic forecast, the path of policy will be adjusted.