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Traders bullish on the banks after Yellen comments

The "Fast Money"focused on the financial sector after Federal Reserve Chair Janet Yellen hinted at three possible rate hikes this year, coming as early as March.

It would be "unwise" to put off raising interest rates, she said earlier Tuesday.

Trader Brian Kelly said he plans to stay in the banks. He said he likes the Financial Select Sector SPDR Fund. Kelly said Yellen's remarks suggest that the Federal Reserve "will raise rates sooner, faster and more times than in the past."

Trader Tim Seymour said he likes Bank of America and Citigroup in the sector because they have the best operating leverage or ability to keep high gross margins in the current banking environment.

Trader Dan Nathan said he likes JPMorgan Chase and Morgan Stanley. Nathan said investment banks like Morgan Stanley are going to benefit from tax reform.

Trader Guy Adami said he likes Bank of America, JPMorgan and Goldman Sachs because he expects the stock prices to continue on their run.

Disclosures:

GUY ADAMI

Guy Adami is long CELG, EXAS, GDX, INTC. Adami's wife, Linda Snow, works at Merck.

BRIAN KELLY

Brian Kelly is long FCX, Bitcoin, SLV, XLF, HLF, UUP.

DAN NATHAN

Dan Nathan is long XLV March put spread, XLI Feb put spread, FXI Feb put spread.

TIM SEYMOUR

Tim Seymour is long ABX, AAPL, APC, AVP, BAC, BBRY, C, CLF, CVX, DO, DVYE, EDC, EWN, EWZ, F, FB, FCX, FXI, GM, GOOGL, GE, INTC, LQD, MOS, MCD, MUR, OIH, PG, RACE, RAI, RH, RL, SINA, SQ,T, TWTR, VALE, VZ, XOM. short: EEM, SPY, XRT.

His firm is long ABX, BABA, BIDU, CBD, CLF, EEM, EWZ, F, KO, MCD, MPEL, NKE, PEP, PF, TCEHY, SAVE, SBUX, SINA, VALE, VIAB, WMT, WEN, X, YHOO, short EWG, HYG, IWM.