[originaltext] The head of the United States central bank says she expects t

The head of the United States central bank says she expects the U.S. job market to continue to improve. [5]Janet Yellen says the inflation rate should rise close to a yearly rate of 2 percent. That inflation rate would keep prices stable and support the economy, says the central bank, or Federal Reserve System.
    Too much inflation and prices rise too high, too fast. Not enough inflation and prices and growth remain flat or decline. [6]Currently, inflation is well below one percent.
    Many economists interpret Yellen’s comments as a signal that the Federal Reserve might raise the key interest rate on December 16. The Federal Reserve has considered increasing important interest rates for a long time. [7]But it has been cautious about making rate changes, fearing that the economy would react badly.
    In a speech to the Economic Club of Washington on Wednesday, Federal Reserve Chair person Yellen said she expects the effects of a strong U.S. dollar and unsteady foreign markets to decrease over time. She cautioned that bad economic reports could still delay any rate increase.
5. What do we learn about "a yearly rate of 2 percent"?
6. What is the current inflation rate?
7. Why is the Federal Reserve cautious about making rate changes?