AP News

News Summary: Yellen defends Fed's low rate policy

DEFENDING FED POLICY: The No. 2 official at the Federal Reserve, Janet Yellen, said Monday that she does not see any immediate risks from the Federal Reserve's low-interest rate policies that would prompt her to urge that they be curtailed.

UNITED FRONT: The comments from the Fed vice chairman to a policy conference sponsored by the National Association for Business Economics echoed remarks Federal Reserve Chairman Ben Bernanke made last week.

THE CRITICS: Critics both inside and outside of the Fed who have warned that the efforts could generate higher future inflation or market instability. The Fed is buying $85 billion per month in Treasury bonds and mortgage-backed securities to push long-term rates lower.

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