The Federal Reserve will likely need to raise interest rates at an upcoming meeting, says Fed Chair Janet Yellen. Fred Katayama reports.
Testifying before the Senate Banking Committee, Fed chair Janet Yellen said the Federal Reserve will likely need to raise interest rates at an upcoming meeting. (SOUNDBITE) JANET YELLEN, CHAIR, FEDERAL RESERVE, (ENGLISH) SAYING: "Waiting too long to remove accommodation would be unwise, potentially requiring the FOMC to eventually raise rates rapidly, which could risk disrupting financial markets and pushing the economy into recession." Yellen did not say if she sees the first rate hike of the year at the Fed's next meeting in March or in June, when most analysts expect it. She also didn't say how many hikes she expects this year. Ross Gerber of Gerber Kawasaki: (SOUNDBITE) ROSS GERBER, CEO, GERBER KAWASAKI, (ENGLISH) SAYING: "There is a new level of uncertainty that that's been created under the Trump administration about growth in the future because we don't know if any of the tax plans are actually going to happen, and will get passed. And then, secondly, we've seen, actually, a little bit of a slowdown in the economy in all this protesting and unhappiness, so we have part of the country that's actually really happy, but part of the country that's not, and that actually depresses spending a little bit." Yellen also said that President Donald Trump's changes to fiscal or other economic policies could potentially affect the economic outlook, but added it's too early to know how for now. She will continue her semiannual testimony to Congress on Wednesday.