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Yellen Backs ‘Lower for Longer’ Fed Rate Policy Amid Risks

Federal Reserve Board Vice Chairman Janet Yellen said she favors holding the benchmark interest rate “lower for longer” while cautioning that some bond-market investors may be paying too much for higher yields.

The Fed vice chairman said the central bank’s low-rate policies are intended “to promote a return to prudent risk-taking” in credit markets. “Obviously, risk-taking can go too far,” Yellen said today at an International Monetary Fund panel discussion on monetary policy in Washington.