US Treasury Secretary Janet Yellen speaks at a press conference, after attending the G7 Treasury Secretary’s meeting, at Winfield House in London, UK on June 5, 2021.
Justin Tallis | Rueters
US Treasury Secretary Janet Yellen said President Joe Biden’s $4 trillion spending proposal would be positive for the country, even if it led to a hike in interest rates.
During an interview with Bloomberg News, the former chairman of the Federal Reserve said the president’s plans would be about $400 billion each year — a level of spending she said wasn’t enough to cause an inflationary overrun.
“If we could get a slightly higher interest rate, that would be a plus for society’s stance and that of the Fed,” Yellen told Bloomberg.
“We’ve been fighting too low inflation and too low interest rates for ten years,” she said. She added that if the packages help at all to “lighten things up, that’s not a bad thing — that’s a good thing.”
Read the full Bloomberg report here.