Yellen: ‘It Is a Concern’ Inflation Isn’t Higher

EXCERPT:

YELLEN: "Now, I recognize and it is important that inflation has been running under our 2 percent objective for a number of years and that is a concern, particularly if it were to translate into lower inflation expectations. For a number of years there were very understandable reasons for that short fall and they included quite a lot of slack in the labor market, which my judgment would be has largely disappeared, very large reductions in energy prices and large appreciation of the dollar that lowered import prices, starting in mid-2014. This year the short fall of inflation from 2 percent, when none of those factors is operative, is more of a mystery."