The Federal Reserve may have been wrong about the jobs market and inflation over the past half-decade, Chairwoman Janet Yellen acknowledged Tuesday, but the central bank remains convinced that slowly raising interest rates is the best course of action.

“My colleagues and I may have misjudged the strength of the labor market, the degree to which longer-run inflation expectations are consistent with our inflation objective, or even the fundamental forces driving inflation,” Yellen said in a speech prepared for a convention of business economists in Cleveland.