Yellen: Rate rise 'on track' for 2015

Financial risks to holding rates

The Federal Reserve is on track to hike rates this year, despite recent dips in inflation, said chair Janet Yellen.

Despite expectations of a raise earlier this month, the Federal Open Market Committee voted by 9-1 to hold rates as global market volatility, largely led by tumbling shares in China, overshadowed a stronger domestic picture in the US. However, speaking yesterday, Yellen said US economic prospects "generally appear solid", according to the BBC, and as long as inflation remained stable and employment numbers continued to move higher, conditions would be right for a rise later in the year. Fund manager reaction: Where now for rates after Fed hold? She added recent inflationary weakness...