Yellen says the Fed does not want to hurt job growth or income gains with rate increases

Economic Indicators Associated Press

Federal Reserve Chair Janet Yellen says when the Fed begins to raise interest rates, it wants to make sure that it doesn't derail further gains in U.S. jobs and incomes.

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Delivering her second day of congressional testimony, Yellen responded to concerns from some Democratic senators that once the Fed does start raising rates, it could set back the job market.

Sen. Robert Menendez of New Jersey argued that the more prudent approach would be to keep rates at a record low for longer.

"We don't want to cut off job growth and income growth," Yellen said.

She reiterated her view that if the economy keeps improving, the Fed will likely begin raising rates this year.