Fed expects further interest rate hike

The head of the Federal Reserve System, which performs the functions of the US central bank, considers it expedient to further increase the bank discount rate. Janet Yellen announced this in Philadelphia at the Council on Foreign Relations, saying: "Further gradual rate hikes are likely to be appropriate." However, Yellen did not specify exactly when the increase will take place.

Last Friday, the US Department of Labor published statistics, according to which the growth of new jobs in the country in May amounted to about 38 thousand, which is lower than previously estimated, and caused disappointment among specialists. Yellen said: "This information prompted another discussion of the forecast of economic development."

The head of the Fed warned of "significant uncertainties" that could affect the state of industrial production, entrepreneurship, inflation, the employment market and the overall economic development of the United States.

"Uncertainties are significant, how they evolve will determine our progress towards our goals and our position on monetary policy," Yellen said. She acknowledged that the Fed will have to slightly adjust previously announced methods of maintaining maximum employment and price stability. Yellen said last month that rates should be raised "in the coming months", given a stable economic situation.