Yellen's speech indicates Fed will rethink rate-hike plans

Philadelphia

THE Federal Reserve, mindful of unexpectedly weak job growth last month, has abandoned hope of raising interest rates at its next meeting in June, but Fed officials say they are still thinking seriously about raising rates in July or September.

Janet Yellen, the Fed's chairman, said a few weeks ago that she expected the Fed to raise its benchmark interest rate "in the coming months", but she omitted those words from a Monday speech, indicating the reported weakness of job creation in May has caused the Fed to rethink its plans.