Investing.com – Federal Reserve Chair Janet Yellen said on Wednesday, she sees a gradual increase in interest rates this year and pointed out that the economy is “getting closer” to the Federal Reserve’s objectives.
Fed chair Yellen said in a press conference on Wednesday, that the progress of the economy was the basis for the decision to increase rates by 0.25% to a 0.75-1% range but pointed out that three interest rates hikes in 2017 qualifies as gradual.
“The relatively steady participant rates is an improving sign of strength in the job market” Fed Chief Yellen said.
Ms. Yellen reiterated that the US central bank would continue to provide accommodative monetary policy to support the US economy but warned against a prolonged period of lower rates in order to avoid a situation which forces the fed to “raise rates rapidly”.
The U.S. dollar index traded 0.94% lower to 100.69.
Gold futures rose $12.65, or 1.03% to $1215, while Treasury yields fell 3.51% with the U.S. 10-Year trading at around 2.502 by 15:24 EDT.
Elsewhere, the Dow Jones Industrial Average traded 0.53% higher to 20,948. The S&P 500 gained 0.85% and the Nasdaq Composite climbed 0.78% to trade at 5,902.