Fed plans only gradual rate hikes to protect housing: Yellen

(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)