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Yellen Doubles Down on Bet Hot Job Market Stokes Inflation

  • Fed chief counsels against overreacting to recent price data
  • Economists caution her gamble hinges on a 60-year-old theory
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Fed Chair Janet Yellen's Press Conference in Two Minutes

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Federal Reserve Chair Janet Yellen is pressing ahead with plans to normalize monetary policy, betting that the ongoing strength of the labor market will ultimately prevail over the recent weakness in inflation.

In a press conference on Wednesday after the Fed raised interest rates for the second time in 2017, Yellen played down a softening of price pressures in the last few months and voiced confidence the central bank was on course to hit its 2 percent inflation goal.