Yellen Backs Gradual Rate Rises as Fed Not Behind the Curve
- Fed chair says fiscal policy one uncertainty clouding outlook
- Yellen sees risk in allowing the economy to run too hot
Yellen: The Fed Is Not Behind the Curve
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Federal Reserve Chair Janet Yellen backed a strategy for gradually raising interest rates, arguing that the central bank wasn’t behind the curve in containing inflation pressures but nevertheless can’t afford to allow the economy to run too hot.
“I consider it prudent to adjust the stance of monetary policy gradually over time,” she Thursday in remarks to the Stanford Institute for Economic Policy Research in California, while stressing the considerable doubt surrounding that outlook.