Yellen set to testify before Senate Banking on June 21

Federal Reserve Chairwoman Janet Yellen will deliver her semiannual report on monetary policy to the Senate Banking Committee on June 21, the panel announced Wednesday.

Yellen, who last testified on Capitol Hill in February, will appear before the banking panel less than a week after the Federal Open Market Committee meets for two days from June 14 to 15 to determine whether the central bank will raise rates for the second time in six months. 

{mosads}The House Financial Services Committee has yet to announce a hearing with Yellen, although she usually testifies there the day after the Senate. 

Last week, Yellen said that the Fed could raise interest rates soon.

“It’s appropriate, and I’ve said this in the past, I think for the Fed to gradually and cautiously increase our overnight interest rate over time and probably in the coming months, such a move would be appropriate,” said Yellen in a speech at Harvard University. 

In April, the board discussed raising rates in June as long as the economy continues to strengthen.

The Fed closely watches the labor market’s expansion. May’s job numbers are set for release on Friday and could influence the decision after a sluggish start to the year. 

“Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter … then it likely would be appropriate for the Committee to increase the target range for the federal funds rate in June,” the minutes stated.

Consumers picked up their spending in April, raising expectations for a rebound of economic growth this spring.

Spending jumped 1 percent last month, the largest increase since August 2009, the Commerce Department reported Tuesday.

That news led Moody’s Analytics to raise April–June quarter growth expectations to 2.7 percent from 2.3. 

Tags Federal Open Market Committee Federal Reserve System Interest rates Janet Yellen Monetary policy

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