The U.S. Federal Reserve could raise interest rates in the following spring after a potential end of its asset purchase program in the fall, Reuters reported Thursday.
U.S. stocks and government bond prices dropped following Yellen’s announcement, according to the report.
Yellen also told the conference that rates would rise only in phases and could remain at a low level even when the unemployment rate falls, the report says.
Saphir and Hughes write that Fed officials forecast rates to reach 2.25 percent by the end of 2016.
The Fed also plans to reduce purchases of U.S. Treasuries and mortgage-backed securities to $55 billion from $65 billion every month, Reuters reports.