citing strong jobs growth and rising home prices which tend to spur consumer spending.

The labor market has continued to strengthen.

Job gains has averaged a hundred eighty thousands per month so far this year

down only slightly from the average in 2016.

and still well above the pace we estimate

would be sufficient on average to provide jobs for new entrance to the labor force.

Strong jobs growth normally leads to higher wages,

and when combined with a boost in employment

it generally puts upward pressure on consumer prices.

But, inflation has be stubbornly subdued.

The committee continues to expect that the evolution of the economy

will warrant gradual increases in the federal funds rate over time

to achieve and maintain maximum employment and stable prices.

That expectation is based on our view

that federal funds rate remains somewhat below its neutral level.

That is the level of federal funds rate that is neither expansionary nor contractionary

and keeps the economy operating on an even keel.

Many in the financial industry interpret this language as being a strong hint

that the Fed is likely to slowdown the pace of future rate hikes.

And though Yellen says there's still a lot of uncertainty,

she's still sticking to her original thesis

which is if economic conditions continue as they are,

eventually inflation will bubble up,

and that will need higher interest rates in order to contain it.

Daniel Wrenches, CGTN, Washington.