Investing.com - Fed Chair Janet Yellen said on Wednesday she sees rate hikes "a few times a year" as the economy continues to recover until it reached the neutral rate which she expects by the end of 2019.
"As the economy approaches our objectives, it makes sense to gradually reduce the level of monetary policy support," Yellen said in a speech prepared for the Commonwealth Club in San Francisco, adding "changes in monetary policy take time to work their way into the economy."
The labor market also continued to show progress and is close to full employment, which Yellen said she judges has a jobless rate of 4.75%.
"Now, it's fair to say, the economy is near maximum employment and inflation is moving toward our goal," she said.
The Fed has raised its key policy rate twice since the financial crisis, to a target range of 0.50% to 0.75%.