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Yellen says Fed rate hike likely appropriate in coming months

The Federal Reserve should raise interest rates "in the coming months" if the economy picks up as expected and jobs continue to be generated, U.S. central bank chief Janet Yellen said on Friday, bolstering the case for a rate increase in June or July.

"It's appropriate ... for the Fed to gradually and cautiously increase our overnight interest rate over time, and probably in the coming months such a move would be appropriate," Yellen said during an appearance at Harvard University.

Her comments, while balanced, suggested the powerful Fed chair is on board with several of her colleagues who in recent weeks have said the central bank is preparing to follow up on an initial policy tightening in December.

Weak oil prices and a strong dollar have been blamed for helping to keep U.S. inflation below the central bank's target.

She has a second public appearance scheduled for June 6 in Philadelphia, just a week before the next policy decision.

http://in.reuters.com/article/usa-fed-yellen-rates-idINKCN0YI272

but Kudlow: I disagree with Yellen's economic assessment

http://video.cnbc.com/gallery/?video=3000521318