Yellen signals more rate hikes on the way

Markets Associated Press

In this Wednesday, Sept. 20, 2017, file photo, Federal Reserve Chair Janet Yellen speaks at a news conference following the Federal Open Market Committee meeting in Washington. (AP Photo/Pablo Martinez Monsivais, File)

Federal Reserve Chair Janet Yellen says the U.S. economy has gained strength this year and that will keep the Fed on track to gradually increasing its key policy rate.

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Yellen’s congressional testimony was a strong signal that the central bank is ready to boost its policy rate for a third time this year when it meets in December. Yellen said that the economy has remained strong, despite the recent hurricanes. She says while chronically low inflation has failed to move higher, she believes that is temporary.

Yellen’s appearance Tuesday could be her last congressional testimony as Fed leader. President Donald Trump has nominated Fed board member Jerome Powell to succeed Yellen as Fed chairman.