Federal Reserve (Fed) Chair Janet Yellen said Friday that she expects to begin raising interest rates later this year but stressed that a number of headwinds still are holding back the U.S. economy. Yellen said in a speech in Cleveland, Ohio, that the economic outlook remains murky, with lingering weakness in the labor market and new potential threats overseas. The Fed chair said that there are reasons for encouragement, but she also outlined a number of concerns, from low wage growth to a low labor participation rate. She said that inflation is still well below the central bank's 2 percent target. Yellen said that even when the Fed does start raising rates, the increases will be gradual.
