Yellen: Both Federal Reserve Mandates Have Same Solution — More Monetary Stimulus

REPORTER: "This is partly a follow-up to Steve Liesman's question. How would the economy respond if inflation pushed above target before full employment? Your colleague has suggested that the committee might consider allowing inflation to temporarily overshoot because that might achieve a larger, faster reduction in unemployment. And will financial stability regulations play a role in when and how fast the committee normalizes interest rates?"
YELLEN: "So, with respect to the question of overshooting, let me start by saying that inflation continues to run well below our objective. And we are still some ways away from maximum employment. And for the moment, I don't see any trade-off whatsoever in achieving our two objectives. They both call for the same policy, namely, a highly accommodative monetary policy. So, at best, overshooting of inflation or the thought that we will reach our inflation objective before we've attained maximum employment, I suppose I would see at most as a risk that we could face somewhere down the road. Symmetrically, it's also conceivably a risk that we would reach our maximum employment objective before we've actually attained our inflation objective. So, there are different ways in which we could conceivably --  um, there could conceivably arise policy conflicts or trade-offs somewhere down the road."