Waiting too long to raise interest rates would be "unwise" as economic growth continues and inflation rises, Fed Chair Janet Yellen told Congress on Tuesday.
Repeating caution that she and other central bank officials have issued in recent months, Yellen said that even though the Fed expects to hike gradually and to keep policy accommodative, getting rates back to normal levels is important and hikes will be considered ahead.
Market reaction was prompt, with government bond yields jumping on sentiment that Yellen was teeing up next month's Fed meeting as possible for a rate hike.
"By leaving March rate hike options open, Chair Yellen is sticking with her playbook with repeated reminders that every meeting is in fact a live meeting," said Mark Hamrick, senior economic analyst at Bankrate.com.
I still doubt that we will see any rate hikes this year.......so I'll stick with gold
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