Yellen: 1st rate hike likely by year end

The AP reports:

Federal Reserve Chair Janet Yellen said Friday she expects to begin raising interest rates later this year — if the job market improves and the Fed is confident inflation will climb closer toward its target rate.

She described the U.S. economy as “well positioned for continued growth,” but at the same time highlighted a number of headwinds that threaten progress. Job wages have been disappointing, and too many people who want full-time jobs and instead working part-time, she said. She also noted a lackluster housing recovery and modest business investment.

The Fed has kept its key benchmark rate at a record low near zero since December 2008.

“I think it will be appropriate at some point this year to take the initial step to raise the federal-funds rate target and begin the process of normalizing monetary policy,” Yellen said to the Greater Providence Chamber of Commerce in Providence, Rhode Island.

"Probably".