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The head of the US Federal Reserve has said an interest rate rise is likely to be “appropriate in the coming months”, if the economy continues to improve.  Speaking at an event at Harvard University, Janet Yellen said the central bank will monitor incoming data and risks, reiterating that the Fed will tread with caution in raising rates.  “It’s appropriate - and I’ve said this in the past - for the Fed to gradually and cautiously increase our overnight interest rate over time.”  In Yellen’s biggest hint yet that the central bank could act this summer, she added: “Probably in the coming months such a move would be appropriate.”  “If we were to raise interest rates too quickly and we trigger a downturn we have limited scope to respond. We should be cautious about raising rates too steeply.”...The rate hike is contingent on the ongoing improvement in the world’s largest economy, specifically the labor market. Unemployment currently stands at 5pc. “The economy is continuing to improve…. Growth looks to be picking up,” said she added. Joshua Mahony, of IG, said: “Much has been made of today’s speech from Janet Yellen, which caps off a week where seemingly every member has had their say on the possibility of a June rate hike.”