Yellen 'Looking Forward' To US Rate Rise

The chair of the US central bank has stoked expectations of the country's first interest rate rise in nine years this month, saying she is "looking forward" to it.

In a speech in Washington, Janet Yellen expressed confidence in the US economy - hailing consumer spending as "particularly strong" - and also cited the recovery in the jobs market.

The Federal Reserve is widely tipped to begin a gradual increase in interest rates following its meeting which concludes on 16 December.

In her speech, Ms Yellen said the US economy had "recovered substantially since the Great Recession".

She (Munich: SOQ.MU - news) added: ""When the committee (FOMC) begins to normalise the stance of policy, doing so will be a testament ... to how far our economy has come.

"In that sense, it is a day that I expect we all are looking forward to."

The benchmark federal funds rate has been stuck between a 0% to 0.25% range since 2008.

It (Other OTC: ITGL - news) is tipped to rise despite evidence of an uneven recovery - with manufacturing exporters suffering particularly from the effects of a strong dollar.

Ms Yellen reaffirmed her view that the drag on growth and inflation from weakness in the global economy and falling commodity prices would moderate next year.

The Fed is on course to raise rates at a time when the European Central Bank (ECB) is set to go in the opposite direction on Thursday.

The ECB is also forecast to extend its €1.1tn (£778bn) asset purchase, or QE, programme as part of efforts to stoke economic recovery across the 19 nations using the euro.

The eurozone is currently in the grips of low inflation - hitting investment confidence.