TOKYO — Federal Reserve Vice Chairman Janet Yellen said Thursday that a big reason why the Fed has acted so "aggressively" to stimulate the U.S. economy is to avoid the "corrosive and dangerous" effects of deflation.

But Yellen, speaking ahead of the annual meetings of the International Monetary Fund and World Bank, suggested that the Fed and other major central banks are near the limits of what they can do to offset weak private demand and the inability of debt-ridden governments to provide more fiscal stimulus.

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