Fed may have ‘misjudged’ inflation – Yellen

WASHINGTON: US Federal Reserve Chair Janet Yellen said Tuesday that central bankers believe the surprisingly low inflation in the past year is only temporary, but she acknowledged they may have “misjudged” the situation.

In her first comments since the Fed last week decided to keep the benchmark interest rate on hold, Yellen again said gradual rate hikes will be appropriate, but she warned against “moving too gradually” and risk fueling inflation.