by Peter Spence
The Federal Reserve is still on track to raise US interest rates this year, the central bank’s chair hinted on Monday, despite “disappointing” recent data.
Janet Yellen said that “positive economic forces have outweighed the negative”, signalling that the Fed would have to increases interest rates before the year was out. She added that she expected “the economic expansion to continue, with the labour market improving further and GDP growing moderately”.
The Fed chair admitted that the monthly US jobs report, published on Friday had been “disappointing”. May’s hiring figures were far weaker than had been expected by both policymakers and City analysts, with just 38,000 jobs added in the month.