(Reuters) - The Federal Reserve expects to raise U.S. interest rates only gradually in part to protect the housing market and avoid a “sharp” rise in mortgage rates, Fed Chair Janet Yellen said on Wednesday. Yellen, addressing House lawmakers, said the central bank’s policy-setting committee does not expect a “very steep” path of rate hikes that harms the housing sector, once the tightening begins. Reporting by Jonathan Spicer
On Wednesday , the Federal Reserve announced that it would raise interest rates gradually in order to protect the housing market , indicating that the market is still not strong enough to cope with immediately higher rates , even eight years on from the crisis . Fed Chair , mark Yellen , said that the central bank 's policy committee does not expect that there will be a " very steep " rate of rate increases , so as not to disrupt the housing market .