Fed's Yellen Sees Tighter Credit Conditions

Forex News
San Francisco Fed's Yellen essentially telling the crowd in San Diego to get used to higher credit risk premiums and possibly higher inflation. In her question-and-answer session at the Economics Roundtable, she points out that credit conditions are tighter now despite the aggressive rate cuts. The Fed's action prevented a much nastier outcome, she says. She's also talking up the foreclosure aid bill to help homeowners trapped by rising costs on their mortgages. She's not giving away much on the divergent courses of the Fed and the ECB, which last week raised its target rate, though she says market conditions are possibly more strained this side of the pond.