Rising demand and disrupted supplies caused a spike in commodity prices over the past year, and it is unlikely that they will cause consumer inflation or derail the recovery, so it does not warrant any substantial shift in the stance of monetary policy, Federal Reserve Board vice chairwoman Janet Yellen told the Economic Club of New York Monday.

“However, my colleagues and I are paying close attention to the evolution of inflation and inflation expectations, and we are prepared to act as needed to help ensure that inflation, over time, is at levels consistent with our statutory mandate,” Yellen said, according to a prepared text of her speech that was released by the Fed.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.