The US economy had “recovered substantially” from the post-crisis recession and was set for further growth and firmer inflation, Janet Yellen said, as she laid the groundwork for the first upward move in official interest rates since 2006.
A rate rise would testify to the progress the US has made in shrugging off the legacy of the crash, the Fed chair said, adding there were risks in waiting too long to start normalising policy.
Dangers from abroad had also diminished since September, when the Fed held fire on rates citing risks from China and financial markets.
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