Yellen: FED could raise interest rates "relatively soon"

The Federal Reserve could raise U.S. interest rates "relatively soon" if economic data keeps pointing to an improving labor market and rising inflation, Fed Chair Janet Yellen said on Thursday in a clear hint the U.S. central bank could hike next month.

"Such an increase could well become appropriate relatively soon," Yellen said in prepared remarks that were her first public comments since the United States elected Republican Donald Trump to be the country's next president.

The head of the U.S. central bank also cited the dangers of waiting too long, which could result in the Fed having to move too quickly in the future, according to prepared remarks for delivery to the Joint Economic Committee of Congress Thursday.

At the last meeting in November, monetary policymakers decided the case to increase the key interest rate "had continued to strengthen and that such an increase could well become appropriate relatively soon if incoming data provide some further evidence of continued progress," Yellen said.

She said there is still room for improvement in the labor market, even with some signs of wage increases, but Yellen expects "economic growth to continue at a moderate pace" to help improve labor market conditions and push inflation higher.

The U.S. central bank last hiked in December 2015, which in itself was the first tightening since June 2006. Rates had been anchored near zero since the financial crisis in 2008.