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Fed Chairwoman Yellen says economy gaining momentum

Published 01/18/2017, 03:08 PM
Updated 01/18/2017, 03:21 PM
© Reuters.  Yellen's Speech in San Francisco.
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Investing.com -- Federal Reserve Chairwoman Janet Yellen said the American economy is gaining momentum, giving central bankers leave to start raising interest rates to constrain inflation, according to remarks released to the media this afternoon.

The markets were awaiting the remarks.

The Dow Jones Industrial Average (DJIA) was down on Wednesday afternoon to 19793.82, a decrease of 0.17%.

The S&P 500 market was up, however, to 2269.73, an increase of 0.05%.

The Nasdaq was also higher today to 5544.33, a boost of 0.11%

Telecom stocks lead declining shares for the day.

Gold prices were down to $1206.80, a decline of $6.10 per ounce, and silver prices were also declining on intraday trading, at $17.14, a drop of 0.5%.

After more than a decade of benefiting from historically aggressive easing measures, the economy is "close" to the central bank's growth goals, though policy change shall be incremental, Yellen said in San Francisco.

The Fed last fall increased interest rates for the second time since 2006.

Federal Open Market Committee officials last month stated that three more hikes are scheduled for this year, though the precise timing will depend on economic growth data.

"As the economy approaches our objectives, it makes sense to gradually reduce the level of monetary policy support," Yellen said, according to prepared remarks, obtained by Investing.com.

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