SF's Yellen on prospects for the U.S. economy

In the speech 'Prospects for the U.S. economy' given on 31 July Janet Yellen of the Federal Reserve Bank of San Francisco said the current federal funds rate is "in a vicinity" of the right level even though news on inflation has been "disappointing."

Yellen said core inflation is currently above her "comfort zone" of 1 percent to 2 percent. "Recent inflation news has been disappointing."

"It might be thought that policy should continue to tighten until the inflation data move back to a rate

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