The case for a U.S. interest rate hike is strong thanks to improving labor market and expectations for solid growth, says Federal Reserve Chair Janet Yellen. Bobbi Rebell reports.
U.S. Fed chair, Janet Yellen, saying the case for an interest rate hike has gotten stronger in recent months. The labor market looks better and solid economic growth is on the horizon. The remarks were made in a speech in Jackson Hole, Wyoming. She did not say when exactly the U.S. central bank might raise rates. But her comments reinforced the view that it could come later this year. (SOUNDBITE) JEOFF HALL, MANAGING ECONOMIST, THOMSON REUTERS - IFR MARKETS, (ENGLISH) SAYING: "We're not necessary increasing the odds for a September hike. We do think that she is okay with hiking rates sometime in 2016, but the markets perception of what's going on today is that they're more inclined to hike in December." GDP data, released before Yellen's speech, on Friday, showed the economy was more sluggish than initially thought in the second quarter. At the same time, consumer spending, which makes up more than two-thirds of economic activity, grew at the fastest rate since the fourth quarter of 2014.