New Fed chair Yellen signals earlier rate hike

New Federal Reserve chair, Janet Yellen, speaking at her first press statement and statement to Congress, presented a set of economic data which points to an earlier hike in interest rates than previously expected. The Federal Reserve now sees interest rates rising to 1% by the end of 2015, about 0.25% higher than was assumed back in December. By the end of 2016, rates look to be stronger still, rising from an expected 1.75% to 2.25%. US bond yields rose 5 basis points to 2.75%, and could've gone further if it the forecasts hadn't been moderated with a more dovish statement that Fed still expects rates to remain below their long run level of 4% even if inflation is pushed up by falling spare capacity in the economy as a whole