Rate hike 'in the coming months'

Yellen expressed confidence on Friday that the US economy would keep growing and new jobs would continue to be created, suggesting that such an environment would be conducive to an increase in interest rates.

The US economy only grew by 0.8 percent in the first quarter of this year, its weakest pace in a year, according to the latest data from the US Commerce Department. But growth in the current quarter is looking much more robust. Some estimates even put it between 2.5 and 3 percent.

"The economy is continuing to improve," Yellen told an audience at Harvard University on Friday. "Growth looks to be picking up."

As a result, the head of the Federal Reserve said a decision to raise interest rates would be appropriate "probably in the coming months."

Her suggestion echoed a timeframe that has been mentioned by other Fed policymakers in recent weeks as well. Going by their prognoses, such a decision could come as early as June or July.

cjc/hg (AFP, Reuters)