Treasury Secretary Janet Yellen said interest rates may have to rise a bit to prevent the US economy from overheating. In an interview with The Atlantic that was recorded on Monday and aired on Tuesday, the Treasury chief said: relatively small. relative to the size of the economy. ”
Yellen was discussing the Biden administration’s $ 2.3 billion infrastructure proposal and its $ 1.8 billion American Family Plan. He acknowledged that those proposals have “high price tags,” but emphasized that they are long-term programs. See Also: Fed’s Kaplan, In Interview, Presses For Discussion To Begin On Curbing Support For The Economy If Congress passes, those plans would be in addition to the 1.9 trillion COVID relief bill. dollars that President Joe Biden signed in March. On Monday, Senate Republican Leader Mitch McConnell said Democrats should expect “zero” support from his party for Biden’s high-value new infrastructure and social spending proposals. Biden’s party faces a variety of options on how to proceed, including the possibility of using a process called budget reconciliation, which would allow Democrats to pass a bill without Republican votes in the Senate. Now Read: McConnell Predicts ‘Zero’ Republican Support for Biden’s Jobs and Family Plan On Sunday, Yellen said Biden’s proposed spending on infrastructure and families would not drive inflation, because the plans would be phased in over 10 years. See: Yellen Says Biden’s Phased Spending Plan Won’t Fuel Inflation Last week, the Federal Reserve, after its last meeting, maintained its strategy of helping the US economy with ultra-low interest rates, even when he saw big signs of faster growth. The central bank kept a key short-term interest rate close to zero and maintained monthly purchases of $ 120 billion in Treasuries and mortgage-backed bonds. President Jerome Powell said the Fed would stay the course until the economy strengthened further and coronavirus cases fell sharply. Also read: Fed sticks to easy money strategy even as it sees US economy strengthening US stocks DJIA, -0.26% SPX, -1.04% COMP, -2.31% deepened their Losses from comments on interest rates by Yellen, former head of the Federal Reserve.