Janet Yellen sought to lay the groundwork for the end of zero interest rates in America, opening up the US Federal Reserve’s options on policy against the backdrop of a strengthening economy.
Speaking before a US Senate committee yesterday, the Fed chairwoman gave a cautiously optimistic assessment of the performance of the US economy, emphasising that the labour market had improved “along many dimensions” even if there was room for further progress.
If the central bank modified its guidance to markets, rate moves could follow at any meeting, Ms Yellen said, as she prepared global investors for interest rate rises later this year.
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