Janet Yellen: Interest Rate Hikes Will Depend on Economy

EXCERPT:

YELLEN: "Now, many of you would love to know exactly when the next rate increase is coming and how high rates will rise. The simple truth is I can't tell you because it will depend on how the economy actually evolves over coming months. The economy is vast and vastly complex and its path can take surprising twists and turns. What I can tell you is what we expect along with a very large caveat that our interest rate expectations will change as our outlook for the economy changes. That said, as of last month, I and most of my colleagues, the other members of the Fed board in Washington and the presidents of the 12 regional Federal Reserve Banks were expected to increase our federal funds rate target a few times a year until, by the end of 2019, it is close to our estimate of its longer-run neutral rate of 3 percent. The term neutral rate requires some explaining. It's the rate that, once the economy has reached our objectives, will keep the economy on an even keel."