Treasury Secretary Yellen warns interest rates may need to rise
She made the comments in a pre-recorded statement for an event hosted by the
Atlantic magazine as growing concerns have been raised over whether Biden’s spending plans will lead to an increase in inflationary pressures.
Janet Yellen in Congress in 2017 (Source: Federal Reserve)
“It may be that interest rates will have to rise somewhat to make sure that our economy doesn’t overheat, even though the additional spending is relatively small relative to the size of the economy,” Yellen said.
“So it could cause some very moderate increase in interest rates to get that reallocation. But these are investments our economy needs to be competitive and to be productive.”