Yellen says rate-hike case 'has strengthened in recent months'

Washington

FEDERAL Reserve chair Janet Yellen said the case to raise interest rates is getting stronger as the US economy approaches the central bank's goals.

"In light of the continued solid performance of the labour market and our outlook for economic activity and inflation, I believe the case for an increase in the federal funds rate has strengthened in recent months," she said in the text of a speech on Friday to central bankers and economists in Jackson Hole, Wyoming.

Ms Yellen also said the economy is "nearing" the Fed's goals of full employment and stable prices. The Fed chair didn't discuss the specific timing of a rate move in her first public comments since June.

The Federal Open Market Committee (FOMC) raised its target for the federal funds rate to a range of 0.25 per cent to 0.5 per cent in December, after keeping the benchmark near…