Yellen comments at the Economic Club of Washington at 17:25 GMT:

  • Delaying liftoff too long risks abrupt tightening
  • Downside risks from abroad have diminished since the Summer
  • Slowdown in China likely to be modest and gradual
  • China has taken action, could do more if needed
  • Expects inflation to move up to 2% over next few years
  • Fiscal policy to be positive for growth in coming years
  • Household spending particularly solid in 2015
  • Expects continued economic growth at a moderate pace
  • Sees risks to outlook as 'very close to balanced'
  • Lower inflation expectations would be a concern
  • Inflation expectations remain well balanced
  • Full text of Yellen's speech

More US dollar strength on the headlines. Cable now below 1.49 briefly.