2017.10.1521:59:00UTC+00 Yellen Sees Inflation Gaining Momentum Despite Present Weakness

Federal Reserve Chair Janet Yellen said that the U.S. central bank projects continuing hiking interest rates gradually given the solid growth, the robust and the healthy global economic conditions drive up inflation despite noting the persistently low price pressures.

Speaking on Sunday during an event in Washington, the Fed chief expressed her belief that the soft readings will not prevail and with the ongoing tightening of the labor markets, she anticipates inflation to pick up its pace in the coming year.

She also noted that the most unexpected development in the U.S. economy so far this year is the inflation. While Yellen expects a rise in price pressures, she and other policymakers acknowledge that this year's inflation could indicate something more persistent than what is seen in the Fed's baseline projections.

In August, core inflation clocked in at 1.3 percent, significantly below the Fed's target of 2 percent. Meanwhile, employment has significantly topped estimates by officials, as the jobless rate dropped to 4.2 percent and the participation rate stabilized.

Yellen's term as the Federal Reserve's chairwoman will expire in February, but she is still seen as one of the candidates President Donald Trump is considering to take control of the central bank.