Federal Reserve Chair Janet Yellen says she expects to start raising interest rates later this year but stresses that a number of headwinds are still holding back the U.S. economy.
She says the economic outlook remains murky, with lingering weakness in the labor market and new potential threats overseas.
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Yellen, speaking on the economy for the first time since the Fed's June meeting, sees reasons for encouragement. But she also outlined a host of concerns, from low wage growth to a low labor participation rate. She says inflation is still well below the Fed's 2 percent target.
Yellen, whose comments came in a speech in Cleveland, says even when the Fed does start raising rates, the increases will be gradual.