The case for another interest-rate increase has strengthened in recent months, according to Federal Reserve Chair Janet Yellen.
“In light of the continued solid performance of the labor market and our outlook for economic activity and inflation, I believe the case for an increase in the federal funds rate has strengthened in recent months,” Yellen said at the annual Jackson Hole Symposium in a speech titled “The Federal Reserve’s monetary policy toolkit”.
“Of course, our decisions always depend on the degree to which incoming data continues to confirm the Committee’s outlook,” she added. She noted that inflation and employment were approaching the Fed’s goals.
The speech, according to Business Insider, focused at length on the Fed’s options to support the economy in a downturn.
“Even if average interest rates remain lower than in the past, I believe that monetary policy will, under most conditions, be able to respond effectively,” Yellen said.