Yellen's remarks will come five days after the Federal Reserve announced it would raise its benchmark interest rate for only the second time since the 2008 financial crisis.
The ceremony, taking place at the Patricia and Arthur Modell Performing Arts Center at the Lyric, is for graduate and undergraduate classes from the university's College of Public Affairs, Merrick School of Business and Yale Gordon College of Arts and Sciences.
Yellen will be awarded an honorary doctor of laws degree.
"We are pleased to have Dr. Yellen join us for this singular day in the lives of our new graduates," University of Baltimore President Kurt L. Schmoke said in a statement. "She is a remarkable person and has had an exemplary, even history-making career as the first woman to lead the Federal Reserve. We hope to recognize her for her many achievements, and perhaps gain a bit of her wisdom along the way."
The central bank announced Wednesday it would raise its benchmark interest rate a quarter point, to a range of 0.5 to 0.75 percent. The increase, though modest, is a sign of confidence in the economy.