SANTA BARBARA, Calif. — San Francisco Federal Reserve Bank president Janet Yellen took a long-term view of the dollar’s value Tuesday, saying that ultimately its strength will depend on the ability of the U.S. and its trading partners to reduce global imbalances.

Yellen, speaking to reporters following her bank’s seaside Asian Economic Policy Conference, downplayed fears of a new asset-price bubble.

She emphasized that the time has not come to tighten monetary policy and said she doubted if it would be time for “the next several months” at least. But Yellen said the Fed is readying tightening tools, including reverse repurchase agreements and term deposits for banks’ excess reserves at the Fed.

— Market News International

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