Mubasher: Federal Reserve Chairwoman Janet Yellen said that gradual rise in the interest rate will be appropriate over time to keep employment and inflation near the Fed’s objectives.

The US economy is now nearing the Federal Reserve's statutory goals of "maximum employment and price stability", Yellen added on Friday at the annual Jackson Hole Symposium in a speech titled "the Federal Reserve's monetary policy toolkit".

Interest rate rise will be in line with the expectations that inflation will go up to 2% over the next few years.