U.S. Treasury Secretary Janet Yellen warned Tuesday that interest rates may need to rise to keep the U.S. economy afloat, comments that have boosted sales in professional stocks.
The former Federal Reserve chairman made the remarks based on Biden’s $ 4tn plan construction and Spending money, above for a number of financial reasons for plague.
“Perhaps interest rates should rise slightly to ensure that our economy does not overstate, although these surplus costs are small compared to economic growth,” he said at a ceremony in The Atlantic magazine.
“As a result, it could lead to a small increase in interest rates to take over. But this is money that our economy needs to compete for and perform well.”
Advertisers and financiers have been embroiled in controversy over whether billions of dollars in federal spending, including the immediate distribution of vaccines, could cause problems swelling. The controversy comes as encouraging checks sent to consumers help in a market that has raised money to make it possible.
Jay Powell, chairman of the Fed, has said he believes inflation will only be “temporary”; The central bank has promised to adhere to stricter spending laws unless it is more effective in raising capital.
The possibility of rising interest rates has been a threat to investors since Joe Biden won the US presidency, although markets continue to rally.
Yellen’s comments added to the pressure on some of the world’s most prosperous companies, whose futures are seen as unprofitable when prices rise and those that fell earlier in Tuesday’s trade. Nasdaq Composite heavyweight ended the day down by 1.9%, while the corresponding S&P 500 was 0.7% down.
Market interest rates, however, have not changed after the forecast, yields to 10-Treasury years 1.59 percent. Yellen recently stressed that pressure on the US and plans to increase government spending on the economy may not lead to inflation. The US Treasury Secretary also said he was confident that if inflation were to rise further than expected, the Federal Reserve would have “weapons” to address this.
Financial analysts often do not look at the concept of financial performance, which is a reflection of the Fed. The Fed Chairman often refrains from commenting on US views on the dollar, known as the Secretary of Treasure.
Yellen’s comments on the Atlantic event were published on Monday – and she used the occasion to say that the ideas Biden would use have addressed the long-running crisis over the US economy.
Biden plans to spend more government money on construction projects, spending on child care, making resources and green energy, to address a range of issues ranging from climate change to profitability and racial diversity.
“We have come a long way in allowing the growing economic crisis,” he said.
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