Fed on track to raise rates 'before year end' - Fed's Yellen

FXStreet (Mumbai) - Federal Reserve Chairwoman Janet Yellen on Wednesday reiterated that the central bank is likely to raise interest rates "at some point this year" if the US economy stays on its current growth path.

As expected Yellen did not offer any clues on the timing of the lift-off. Yellen told the US House committee the Fed expects the economy to strengthen over the rest of 2015.

Labor market improves

In her testimony prepared for delivery Wednesday before the House Financial Services Committee in Washington, Yellen says, “Fed officials expect growth to strengthen over the remainder of this year and the unemployment rate to decline gradually.”

Yellen said that while “labor market conditions have improved substantially, they are, in the FOMC’s judgment, not yet consistent with maximum employment.” She added further, “tentative signs that wage growth has picked up, it continues to be relatively subdued, consistent with other indications of slack.”

Yellen’s testimony was similar to a speech she gave on July 10 as she once again reiterated concerns over the situation in Greece and China.