Janet Yellen has stressed the importance of central bank independence in her first public remarks since Donald Trump’s election victory as new data showed the president-elect will inherit a strengthening economy.

The Federal Reserve chair told Congress yesterday that an increase in short-term interest rates could “become appropriate relatively soon”, raising expectations of a rise at the Fed’s next meeting in December. New economic figures showed a surge in housing starts and a pick-up in inflation.

Ms Yellen said it was “critically important” that central banks have the freedom to make judgments about how best to pursue their goals. Her remarks followed attacks during the election campaign by Mr Trump, who claimed the Fed had kept interest rates low to help the Obama administration.