Yellen says Fed following prudent course on rates

Yellen said the Fed's approach should improve prospects that the economy will achieve sustainable growth, with the labor market operating at full employment and inflation running close to the central bank's 2 percent target.

Some private economists have predicted that the Fed will accelerate its rate hikes this year if the incoming Trump administration is successful in getting Congress to approve tax cuts and other measures to boost economic growth.

In a speech in San Francisco on Wednesday, Yellen said she expected the Fed would raise its benchmark rate, the federal funds rate, "a few times a year" until officials had pushed the rate to close to 3 percent by the end of 2019.