Speaking at the Philip Gamble Memorial Lecture, University of Massachusetts, Yellen said such expectations are based on expectations of continued falling unemployment and fading economic headwinds as US economic prospects 'generally appear solid'.
She also said it will be prudent to begin policy tightening in a timely fashion, at gradual pace and holding rates near zero too long risks abrupt tightening later on.
Regarding inflation, Yellen stated much of recent inflation shortfall is due to special, likely transitory factors and expects inflation rate to reach 2% over next few years.
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