"Yellen said she is forecasting a recovery that is far less robust
than those following past recessions, and expects it to look more
like
the letter U than a V. "

S.F. Fed's Yellen says recovery still at risk of shocks
She's worried more about threat of falling prices

SAN FRANCISCO (MarketWatch) -- San Francisco Federal Reserve Bank
President Janet Yellen said Monday she expects the economic recovery
in the U.S. to be "tepid" and slow, suggesting that a debilitating
and
sustained drop in prices poses a greater threat than runaway
inflation.

In a speech to a group of financial analysts here, Yellen said that
this summer probably marked the end of the U.S. recession, and that
the economy is on track to expand in the second half of this year.

Bernanke's challenges in Term 2President Obama chose the safer path
when he reappointed Ben Bernanke as the head of the Federal Reserve.
But David Wessel says Bernanke has two big challenges ahead: proving
his independence and deciding when to tighten up monetary policy.
But the expansion that's already started to gather steam "will remain
vulnerable to shocks," and the unemployment rate will remain
"elevated
for a few more years," she said in a speech, delivered 10 minutes
before the close of stock-market trading.

Yellen said she is forecasting a recovery that is far less robust
than
those following past recessions, and expects it to look more like the
letter U than a V.

Even a growth rate of 3% to 4% in the gross domestic product would be
considered "tepid," she told reporters after the speech.

An expansion at those levels "will leave us with an unemployment rate
that's way too high for far too long," she said.