Yellen spooks markets with rate hike talk

US markets fell this morning after a surprising comment by US Federal Reserve chairman Janet Yellen that interest rates would rise in 2015.

In her first press conference since her taking over the role from Ben Bernanke, Yellen hinted interest rates could begin to rise from early next year. A previous statement issued had stated that an interest rate rise would be in a "considerable period" of time, but Yellen said it was more likely to be just six months after tapering ends. Pressed to define how long rates will remain low after quantitative easing ends, she said the term would be "in the order of around six months." Quarterly Fed forecasts also showed more officials predicting the benchmark rate, now close to zero, wo...