Fed's Yellen Signals Summertime Rate Hike

(RTTNews) - It will be appropriate for the Federal Reserve to raise interest this summer if the economy continues to improve, Fed Chair Janet Yellen said Friday afternoon.

"I think for the Fed to gradually and cautiously increase our overnight interest over time and probably in the coming months, such a move would be appropriate," she said at Harvard University.

She expects inflation to move back up to 2% objective as crude oil prices have steadied near $50 after plunging to $26 earlier in the year.

Her remarks echo those of her colleagues at the Fed, some of whom have predicted up to three rate hikes in 2016.

Earlier today, official data showed the US economy slowed less than expected in first quarter.