Fed's Yellen Says Aim Now is to Let 'Healthy' Economy Coast Along

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Federal Reserve Board Chair Janet Yellen speaks during a news conference about the Federal Reserve's monetary policy, Wednesday, Dec. 14, 2016 in Washington. The Federal Reserve is raising a key interest rate for the first time in a year, reflecting ... a resilient U.S. economy and expectations of higher inflation. The move will mean modestly higher rates on some loans. (AP Photo/Alex Brandon) (Copyright 2016 The Associated Press. All rights reserved.)

The Federal Reserve plans to raise U.S. interest rates gradually so as to sustain healthy growth without letting the economy overheat, Fed Chair Janet Yellen said on Monday.

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"We want to be ahead of the curve and not behind it," Yellen said at an event at the University of Michigan's Ford School of Public Policy in Ann Arbor. Now that years of aggressive monetary policy easing has nursed the economy back to its current "pretty healthy" state, the aim now is to allow "the economy to kind of coast and remain on an even keel," she said.

 

 

 

(Reporting by Ann Saphir and Jonathan Spicer; Editing by Chizu Nomiyama)

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