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WASHINGTON (AP) — The Federal Reserve is moving toward raising interest rates from record lows — just not likely yet.
When it ends its latest policy meeting today, Fed officials will issue a statement that will be parsed for clues to just when the first rate increase since 2006 might occur. But no news conference with Chairwoman Janet Yellen is scheduled.
Many economists foresee the first hike coming in September, but they don't expect this week's policy statement to clearly signal the timing. Yellen has stressed that the decision will be driven by the latest economic data.
Yellen has left little doubt that the Fed is preparing to raise short-term rates by year's end from the near-zero lows it set during the 2008 financial crisis. With the U.S. economy and job market now steadily rising, the need for ultra-low rates to stimulate growth is fading.
The economy still faces an array of threats, from subpar U.S. manufacturing and business investment to troubles in Europe and Asia.
Yellen has stressed that when the Fed begins to raise rates, it will do so gradually.
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