Noting that soft U.S. inflation was "the........>

FED: Noting that soft U.S. inflation was "the biggest surprise" in economy this

year, Federal Reserve chair Janet Yellen said Sunday that she, and most of the

FOMC, expects a rebound in inflation in the coming year. "My best guess is that

these soft readings will not persist, and with the ongoing strengthening of the

labor markets, I expect inflation to move higher next year. Most of my

colleagues on the FOMC agree," Yellen said in remarks at the G-30 International

Banking Seminar. Yellen did acknowledge there could be structural aspect to the

recent low inflation, such as there being more slack in the U.S. labor markets

than is being perceived.