Federal Reserve Bank of San Francisco President Janet Yellen said the central bank wants authority to issue its own debt, a move that would bolster its efforts to raise interest rates as the credit crisis abates.

The Fed normally raises interest rates by selling Treasuries on its balance sheet, draining reserves from the banking system. That task is tougher with the Fed’s commitment last week to buy more than $1 trillion in mortgage-backed securities, which are harder to sell quickly without roiling markets. The central bank cut its main rate to almost zero in December and switched its focus to emergency credit programs.

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