Summary Box: Yellen warns of risks to low rates

AP News
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Posted: Oct 11, 2010 7:28 PM
Summary Box: Yellen warns of risks to low rates

WATCHING FOR RISKS: Low interest rates may give companies an incentive to take excessive risks that could be bad for the economy, the Federal Reserve's new vice chairwoman, Janet Yellen, warns.

DEFLECTING CRITICS? Yellen has supported the Fed's low-rate policy to bolster the economy. Her remarks don't change that stance. They may be aimed at tempering critics who worry she'll want to hold rates at low levels for too long. That could lead to a wave of speculative buying.

EYES OPEN: Yellen made clear she's aware of the risks.