According to investing.com's fed rate monitor tool, almost 90% of traders expect the Fed to raise rates from 0.75-1% to 1-1.25%.
The US Federal Reserve has increased interest rates for the second time in three months.
Improvement in the labor market strengthened, economic activity rising moderately.
However, Yellen said business and household confidence remain quite strong, and echoed the statement from the Fed's policy-setting Federal Open Market Committee, which repeated its confidence that the economy will continue to expand "at a moderate pace" even with further gradual rate increases. In a separate report from the Labor Department's, Consumer Price Index declined 0.1 percent in May.
The Fed would start with monthly reductions in Treasury holdings of no more than $6 billion and $4 billion in mortgage bonds.
She also laid down plans to reduce the central bank's balance sheet in the second half of the year.
The US Dollar edged higher as investors pin their collective hopes on another rate increase from the Federal Reserve. Unemployment has already reached a 16-year low of 4.3 percent.
USA stocks rose after the Fed announcement, while the dollar reversed some of its earlier losses.
But they downgraded their expectation for inflation to 1.6 percent this year.
U.S. DATA: The Commerce Department said retail spending decreased in May, surprising experts and prompting investors to buy traditionally safe assets like government bonds and high-dividend companies and sell stocks from other industries that depend more on economic growth.
They increased their projections for economic growth this year to 2.2 percent from the 2.1 percent they forecast in March. "Growth is really good, we don't see any kind of slowdowns". "The start of balance sheet runoff and the fact that they haven't slowed their projected path of rate hikes suggest they can do both balance sheet and rate hikes at the same time", said Gennady Goldberg, interest rate strategist at TD Securities.
Yellen would not comment on her future beyond her intention to serve out her term as chairwoman, which ends next February.
Meanwhile, Jim Bianco, president of Bianco Research, thinks the Fed is nearly done raising rates.
Mulvaney said he hoped Yellen is right in maintaining that the move wouldn't restrict the Fed's ability to conduct monetary policy. Thursday's fix was 87 pips, or 0.13 percent firmer than the previous fix of 6.7939. The economy has now added new jobs for 80 straight months.