The Federal Reserve’s actions “mitigated the worst effects of the credit crunch” and, together with the economic stimulus, should push the economy back on track, Federal Reserve Bank of San Francisco president Janet L. Yellen said yesterday.

Core inflation is “on the high side of where I would like it to be” and recent data has been “disappointing,” she told the Certified Financial Analysts Institute, according to text of the speech, released by the Fed.

The “cuts in the target rate, along with the actions to foster greater liquidity in financial markets, have mitigated the worst effects of the credit crunch. But they have not resolved it. Indeed, my sense is that the process of resolution will unfold only gradually."

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