Economists took her remarks to mean while a rate hike remains possible at the Fed’s September meeting, it isn’t necessarily likely.
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Yellen is the lead-off speaker Friday for an annual conference attended by members of the Fed’s board of governors in Washington, officials from the Fed’s 12 regional banks and monetary leaders from around the world.
Yellen said the economy was nearing the central bank’s goals of maximum employment and price stability, but maintained that future hikes should be “gradual”.
The U.S. unit also drifted lower against the South Korean won, Singapore dollar, the Thai baht and Philippine peso.
USA stocks were lower in a choppy session on Friday, with stocks bouncing between gains and losses as investors grappled with the possible timing of a US interest rate hike after comments from Federal Reserve officials, including Chair Janet Yellen. The three are viewed as the core of the US central bank, and the most influential in setting policy. Most analysts tell VOA a rate hike in November – so close to a USA presidential election – is unlikely.
The case to raise interest rates is getting stronger as the US economy approaches the central bank’s goals, Yellen said in the text of a speech Friday to central bankers and economists in Jackson Hole, Wyoming.
Futures indicated about a 24 percent chance the central bank will raise rates when it meets in September and a 53 percent probability of a hike by December, according to data compiled by Bloomberg.
Expectations for higher interest rates would likely continue a recent trend of investors selling high-dividend payers like utilities and telecoms, in favor of sectors tied to economic expansion like financials and industrials.
United States economic growth in the second quarter was a bit more sluggish than initially thought as businesses aggressively ran down stocks of unsold goods, offsetting a spurt in consumer spending.
The MSCI All-Country World index was down 0.1 percent by, after slipping to its lowest level since August 9, while the pan-European 600 fell 0.2 percent.
Other data in investors’ crosshairs next week include personal consumption on Monday, consumer confidence on Tuesday, and auto sales and factory activity on Thursday.
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He added, “Nonetheless, with real GDP expanding by just 1.2% over the past 12 months and inflation continuing to run below target, we still think most Fed officials will want to wait until December before next raising rates”.
