Yellen Says Low Inflation Could Lead to Slower Pace of Rate Rises
September 26 2017 - 1:16PM
Dow Jones News
By David Harrison
Federal Reserve Chairwoman Janet Yellen on Tuesday defended the
central bank's projection for a gradual path of interest-rate
increases over the next few years even though she said low
inflation, if it persists, could lead to a slightly slower pace of
rate rises.
Ms. Yellen and her colleagues have been grappling with subdued
inflation growth for much of the year despite a growing economy and
vigorous labor market. That has presented officials with a dilemma.
From one point of view, the weak inflation readings could be a sign
that interest rates should remain lower than anticipated. Yet
keeping interest rates low for too long could cause inflation to
grow too rapidly and inflate new financial bubbles.
(MORE TO COME)
Write to David Harrison at david.harrison@wsj.com
(END) Dow Jones Newswires
September 26, 2017 13:01 ET (17:01 GMT)
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