Scottish Daily Mail

YELLEN STRUGGLES DURING RATES SPEECH

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THE chairman of the Federal Reserve fell ill during a crucial speech warning interest rates in the United States are ‘on track’ to increase this year.

Janet Yellen said she expects ‘an initial increase later this year followed by a gradual pace of [increases] thereafter’.

But she needed medical attention after struggling through the speech at the University of Massachuse­tts, ( pictured). Yellen appeared to lose her place and stopped several times before abruptly declaring, ‘I think I will end here’, and walking off stage.

Rates last rose in 2006 and have been frozen at between zero and 0.25pc since December 2008, but with the economy recovering the first increase for nearly a decade is firmly on the cards.

Official figures showed the US economy grew at an annual rate of 3.9pc in the second quarter of the year – faster than the 3.7pc initially reported and the 0.6pc rise in output seen in the first quarter.

Julian Jessop, chief global economist at Capital Economics, said Yellen has sent ‘a pretty clear signal that US interest rates are still likely to be raised later this year’.

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