Federal Reserve Chair Janet Yellen reiterates US on course to hike interest rates this year

Jessica Morris
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Yellen said the Fed would look through recent financial market turmoil (Source: Getty)

Federal Reserve chair Janet Yellen today reiterated that the US is on course to raise interest rates this year.

Speaking a week after the Fed delayed a rise in borrowing costs, she said inflation is being weighed down by temporary factors such as a strong dollar and low oil prices. However as these decrease inflation will pick up.

She added that the Federal Open Market Committee (FOMC) would look through renewed concerns over the slowing Chinese economy, as well as the consequent financial market turmoil.

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The world's largest economy would be strong enough to achieve maximum employment and keep inflation expectations stable, she argued.

"Most FOMC participants, including myself, currently anticipate that achieving these conditions will likely entail an initial increase in the federal funds rate later this year, followed by a gradual pace of tightening thereafter," she said in a speech at the University of Massachusetts.

Her comments are in line with those of other FOMC officials who have said that they expect interest rates to rise this year.

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